This is a simple, affordable way for parents to finance their child's entire education costs minus other aid received. Parents can use this loan by itself or as a supplement to any of the Stafford Loans. Financial need is not a consideration and no collateral is required.
Features
Parent is the borrower
The interest rate on PLUS Loans disbursed on or after July 1, 2006 is fixed at 8.5%
Convenient interest-only payment option. Parents can make affordable interest-only monthly payments for up to four years
No debt-to-income ratio: parents of undergraduate students can apply regardless of family income and assets
Complete the online application using OpenNet, Sallie Mae's online loan system.
Eligibility
Student enrolled on at a least half-time basis
Based on cost of attendance
Student must maintain satisfactory progress, as determined by the school
Amounts Available
Total cost of education per child, less other financial aid received is the only limit on PLUS loans
Cost of education is determined by the school, and may include tuition, fees, books, supplies, housing, transportation and personal and miscellaneous expenses in relation to your child's college education
Fees
You will pay an origination fee to the federal government to help offset the cost of student loan programs
You will be required to pay a 1% Federal Default Fee which, in part, guarantees the loan will be forgiven in the event of death or permanent and total disability of the borrower.
Repayment
Repayment of principal and interest starts within 60 days of final disbursement
Repayment may be delayed up to four years while your student is in school, with a forebearance. Forebearance must be renewed annually.
Option for interest-only payments for up to four years is available
$50 minimum monthly payment
10-year maximum repayment period is standard
Other repayment options are available based on amount borrowed and financial need
Complete the FAFSA (Free Application for Federal Student Aid) or a Renewal FAFSA. To choose SNB as your lender for your Federal Stafford Loans, enter the SNB lender code on your application. The SNB lender code is 809081.
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