All your ParentPLUS Loan questions answered.What is a ParentPLUS Loan?The ParentPLUS Loan is a federal education loan for parents of dependent, undergraduate students. There is no minimum or maximum income requirement to be eligible for the ParentPLUS. The borrowing parent must have good credit. Both the student and parent applicant must meet other federal eligibility requirements, such as being a U.S. citizen, national, or eligible noncitizen. The student must also be enrolled in an eligible institution as determined by the U.S. Department of Education.
What are the advantages of getting a ParentPLUS Loan from Nellie Mae?With Nellie Mae as your PLUS lender, you can earn a 0.25 percentage point interest rate reduction for automatic debit payments.
And, when you join Upromise®, you can use your rewards to help pay down balances on your eligible Sallie Mae-serviced student loans.
Applying for a Nellie Mae ParentPLUS Loan is easy and convenient. We've streamlined the process, allowing you to apply online.
You get exemplary customer service, as well as online access to other loan applications, MPNs, calculators, loan information, and budgeting advice.
For added convenience, you can manage your account, make payments, change your address, choose repayment options, defer payments, and do more online at www.SallieMae.com. You also receive combined billing for all Nellie Mae student loans (including ParentPLUS Loan) you have serviced by Sallie Mae.
How much can I borrow under the PLUS Loan program?You can borrow up to the annual cost of attendance at your child's school, minus other financial aid.
For example, if tuition, fees, room and board, books, and transportation cost $15,000, and your child receives $5,000 in financial aid, you are eligible to borrow up to $10,000.
What is the interest rate?The interest rate for ParentPLUS Loan disbursed on or after July 1, 2006 is fixed at 8.5%. For ParentPLUS Loan made before July 1, 2006, the variable rate formula previously assigned applies.
Are there any fees?When you take out a ParentPLUS Loan, you are charged an origination fee of 3% and a default fee of 1% of the loan amount, which are deducted from each loan disbursement.
Is there an application deadline?You must apply for a ParentPLUS Loan before the end of the academic year for which the loan is being borrowed. However, to have your ParentPLUS Loan funds credited to your child's account before the school's billing deadline, you should apply before the start of the academic year, but after you receive your child's financial aid award letter.
What if my credit isn't great?If your application doesn't initially meet the PLUS credit guidelines, you have the option to add a cosigner to your PLUS application.
After I apply for a ParentPLUS Loan, how do I receive the loan funds?Once your loan is approved and processed, we send the funds directly to your child's school. The school first credits your child's account to pay for tuition, fees, room and board, and other applicable charges. If money remains, either the school releases it to you, or you can authorize to have it released to your child to help cover personal education expenses.
How will you pay for your child's education? Download Financing Your Child's Future, our free guide for parents of college or college-bound students. (PDF, 1.41MB)
