Federal PLUS Loan

The Federal PLUS loan is a part of the Federal Family Education Loan Program (FFELP). PLUS loans are available to parents or legal guardians of dependent undergraduate students. Federal PLUS loans are designed to cover any portion of the student's estimated cost of attendance not already being covered by another type of financial aid.

To be eligible for a PLUS Loan, both the student and the parent borrower must meet the following qualifications: 1) the individual must be a U.S. citizen, U.S. national, or an eligible non-citizen, 2) the individual must provide his or her valid social security number, 3) the individual must not be in default on any federal education loan, 4) the individual must meet the guarantor’s requirements with respect to state of residence or regional service area, and 5) the individual must not have been determined to be ineligible for a Stafford or PLUS loan that has already been obtained. In order to verify that the student and the parent borrower meet all of the abovementioned criteria, Lewis & Clark requires that a FAFSA be filed beforew we will certify any PLUS Loan.

How to Apply

You will need to complete a Federal PLUS Loan application directly on your lender's website.

If you have not yet filed a Free Application for Federal Student Aid (FAFSA), you must do so before we will certify your Federal PLUS Loan application. You can file your FAFSA online at www.fafsa.ed.gov.

Fees and Disbursement

The Federal PLUS loan is subject to a 3% origination fee and a 1% default fee. The 1% default fee may or may not be covered, depending on your lender selection. Since these fees are deducted before the lender disburses the loan proceeds, the amount the lender sends will be 3-4% less than the actual loan.

PLUS Loan funds are disbursed to Lewis & Clark at the beginning of each semester. The loan amount will be divided evenly between each semester of enrollment during the academic year. We will notify you when PLUS funds have been received and follow the instructions you have provided for releasing excess funds (beyond what is necessary to clear the student account with the college for that semester).

Deferment of Payment and Forbearance

Payment of a PLUS loan may be deferred if the student is enrolled in school on at least a half-time basis or is engaged in a graduate fellowship. Payment may also be deferred if the borrower is unemployed or in a situation of demonstrable economic hardship. Contact the lender for additional information on deferments. During a deferment, interest continues to accrue on the loan and may be capitalized (added to the principal of the loan).

In situations not covered by deferment, a borrower may ask for a forbearance. By granting forbearance, a lender permits a temporary cessation of payments, allows an extension of time for making payments, or temporarily accepts smaller payments than were previously scheduled. The lender may grant forbearance to a borrower only if the lender reasonably believes, and documents in the borrower’s file, that the borrower intends to repay the loan, but due to poor health or other acceptable reasons, is currently unable to make payments.

Interest and Repayment

As of July 1, 2006, the Federal PLUS Loan interest rate is fixed at 8.5%.

A PLUS loan borrower enters repayment at the time the loan is fully disbursed. The lender must notify the borrower of the terms and conditions for repayment of the loan before repayment is scheduled to begin. The minimum monthly payment is $50.00. A borrower is allowed at least 5 years (unless the minimum required payment will retire the debt in less time), and no more than 10 years, to repay a PLUS loan. A borrower may prepay his or her loan in full or in part at any time, without penalty and without liability for unearned interest.

Alternative repayment schedules and deferment or forbearance options are available on all federal student loans, including the PLUS Loan. Extended repayment plans (up to 25 years) are available for borrowers with FFELP debt exceeding $30,000. Contact your lender for more information.

The following table is based on a standard 10 year repayment plan. Use this table to estimate the monthly payment amount for your Federal PLUS Loan(s).