Who Is the Borrower? |
Parents of eligible dependent undergraduate students. The borrower and the student must be U.S. citizens or permanent residents. |
Interest Rate |
Fixed for the life of the loan at 7.90%. |
Credit Criteria |
Must pass PLUS Loan credit check and must not have adverse credit history. Parent unable to meet the PLUS credit criteria may be able to borrow with a creditworthy “endorser.” The endorser cannot be released from the repayment obligation before the loan is repaid in full. |
Fees |
The 4% origination fee is offset by a 1.5% up-front rebate. Thus, the net loan amount disbursed is approximately 2.5% less than the amount borrowed. |
Minimum and Maximum Allowed |
Loans are approved from $100 up to the total annual cost of education minus any financial aid, including any Federal Direct Stafford Student Loan. |
Repayment Terms |
A 10-year standard monthly repayment of approximately $12.08 per $1,000 borrowed, with a $50 monthly minimum payment. Extended and graduate repayment plans are available. Principal and interest payments begin 60 days after the loan has been fully disbursed. No prepayment penalty. |
Enrollment Status |
Students must be enrolled in an undergraduate degree program for at least 6 credits each semester. |
Deferment Options |
Can defer payments while student is enrolled and until 6 months after the student ceases to be enrolled at least half time. During deferment period interest can be paid monthly, quarterly or capitalized quarterly. Borrowers must contact the Direct Loan Servicing Center to apply for a deferment. |
Can Loan Be Sold? |
The loan will be held by the U.S. Department of Education for the life of the loan. |
Other Borrower Benefits |
Eligible for loan consolidation under Federal Direct Consolidation Loan Program. |
How to Apply |
Get more information:
http://www.ed.gov/offices/OSFAP/DirectLoan/index.html
To apply download and complete the Direct PLUS Loan Request Form. Then mail or fax (617-353-8200) it to BU Financial Assistance.
Call BU Financial Assistance: 617-353-2965.
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