Federal Parent PLUS Loans
General Information about Parent PLUS Loans
The federal PLUS program is a popular financing option for parents of dependent undergraduate students. The PLUS loan is borrowed in the parent’s own name. Before you apply for a PLUS loan, we encoourage you to investigate the availability of federal student loan funds, which may have favorable interest rates. Here are some important details about federal PLUS loans:
- Loan Amount: Parents may borrow any amount up to the full cost of attendance as determined by Stanford, less any other resources. The cost of attendance includes tuition, room & board, and allowances for books, personal expenses, and transportation.
- Credit Qualification: Parent borrowers must meet minimum credit requirements in order to borrow the PLUS loan. A credit check will be conducted when you begin the loan application process. If you do not meet the credit requirements, you will not be able to continue the application process. Students whose parents do not qualify for PLUS loans can borrow additional federal Stafford student loan funds.
- Interest Rate: PLUS loans borrowed after July 1, 2006 will have a fixed interest rate of 8.5%.
- Loan Fees: An origination fee of 3% and a federal default fee of up to 1% will be deducted from each disbursement of your loan.
- Disbursements : Your loan will be disbursed in thirds at the beginning of each academic quarter. Funds are disbursed directly to Stanford via Electronic Funds Transfer (EFT) and are applied to your student’s University bill. If your disbursement exceeds the balance due, you can receive a refund check for the difference, or you can specify that the balance be sent to your student.
- Repayment: Parent borrowers begin monthly repayment within 60 days after full disbursement. The repayment period is ten years. Some lenders offer the option of interest-only payments while your student is in school. See our lender list for details.
Selecting Your Lender
Federal PLUS loans are funded by private lenders, including banks and credit unions. The federal government sets the interest rate, limits on fees, and minimum deferment options for federal PLUS loans. However, many lenders offer benefits to borrowers beyond the minimum requirements set by the government. We encourage you to carefully review your options before choosing a lender.
Note: If you have previously borrowed a PLUS loan at Stanford, your prior lender will be automatically selected for your new loan.
Online Lender Comparison Tool
To help you with your decision, we suggest that you use the
online
lender comparison tool provided by Simple Tuition for Stanford borrowers. This tool allows you
to compare the borrower benefits offered by our preferred lenders, which we have carefully selected
based on the best available benefits and services for our borrowers. We encourage you to review
our explanation of our selection process for preferred lenders. You are not obligated to choose
one of our preferred lenders; you are welcome to choose any lender that participates in the loan
program.
How To Apply For Your Loan
To apply for your loan, please take the following steps:
- Follow this link to request your loan. You can specify the amount that you would like to borrow for the academic year.
- Within two to four weeks of requesting your loan, you will receive an email message from Sallie Mae, the company that manages our online process. The email message will direct you to the website where you can specify your lender and complete your promissory note. You will have the option of signing your promissory note with an electronic signature for fastest processing.
- If you do not receive an email from Sallie Mae, you may check for your promissory
note on Stanford's OpenNet page.
- If you have questions about the online application, you can call our loan processing agency, Northwest Education Loan Association (NELA), toll-free at (800) 979-4441. Be sure to identify yourself as a Stanford parent requesting a PLUS loan.
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