PLUS Loan

There are now two types of PLUS Loans – Parent Loans for Undergraduate Students (the original PLUS Loan) and PLUS Loans for Graduate Students, which first became available July 1, 2006.

PLUS Loan Amounts

• PLUS Loans are limited to covering the difference between the student’s cost of attendance (each term) minus any other financial aid he or she receives.
• Borrowers have no annual or lifetime caps on PLUS Loan amounts.

Loan Eligibility

• PLUS Loans are available only to parents of college undergraduate students and directly to graduate/professional students.
• To qualify, the student must be enrolled at least half-time in an eligible school and eligible program of study.
• Eligibility does not depend on a parent’s or student’s income or assets.
• There are no collateral requirements.
• PLUS Loan borrowers must have reasonably good credit or an acceptable cosigner

Interest Rates

• New PLUS Loans (disbursed on or after July 1, 2006) carry 8.5% interest, fixed for the life of the loan.    

Loan Fees

• PLUS Loans carry a 3% origination fee and 1% default (guarantee) fee.
• NMSL pays the 1% default fee on behalf of its borrowers and reimburses the 2% origination fee to their principal balances.

Repayment

• Repayment of each PLUS Loan begins 60 days after its last disbursement.
• There is a $50 per month minimum payment.
• Flexible repayment options are available.
• Graduate students may receive an in-school deferment and pay interest only or allow the interest to capitalize.
• Borrowers may take up to 10 years to repay PLUS Loans, excluding eligible deferment periods.

NMSL Cost-Saving Programs

• NMSL pays the 1% default fee on behalf of PLUS Loan borrowers and reimburses the 2% origination fee to their principal balances.
• Pot of Gold -5% Principal reduction after 48 monthly on-time payments.
  

For information on other NMSL loan programs, go to Loan Programs.

Click here for NMSL’s Paying for Graduate School brochure.