Parent Loan Options:

The Federal Parent Loan for Undergraduate Students (PLUS):  All parents and legal guardians are eligible to apply for the PLUS Loan, regardless of income. Qualifying for a PLUS Loan is based solely on good credit and there are no debt-to-income ratio guidelines or employment verification requirements.

• Effective July 1, 2006 Federal PLUS Loan: fixed interest rate of 8.5%
  • Loan Amounts: Parents may borrow up to the total cost of attendance for the year, minus any other financial aid that the student receives. The total cost of attendance includes tuition and fees, room and board, books and supplies, transportation, and personal expenses.
    
    
  • Fees: An origination fee of 3% will be deducted from the loan amount prior to disbursement. 1% default fee.
     
  • Repayment: PLUS Loan repayment normally begins within sixty days after the loan has been fully disbursed. In certain circumstances, parents may elect to repay the loan on a graduated repayment schedule, making interest-only payments (the minimum is based on term of the loan or at least $50 per month) for a portion of the repayment term.
• Recommended Federal PLUS Loan Lenders for 2008-2009:
  • Citizens Bank
  • EdAmerica
  • RISLA(Rhode Island Student Loan Authority)
  • Wachovia
• You may use the Borrowsmart tool to determine your best option. Visit www.afford.com/borrowsmart for more information
• To apply, visit www.amsa.com

Student Financial Services
Created: September 9, 2007
Modified: June 11, 2008