Understanding the Federal PLUS Program [Education]: A Comprehensive Guide

Definition & Meaning

The Federal PLUS Program is a loan initiative established under the Higher Education Act (HEA) that allows parents of dependent undergraduate students to borrow funds for educational expenses. This program was initially designed to support parents but has evolved over the years to include loans for graduate and professional students. As of July 1, 2006, the program is available for graduate and professional students, while previously it also covered loans for dependent graduate students and independent undergraduates.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A parent applies for a Federal PLUS loan to cover the remaining tuition costs for their child attending a state university. The loan allows them to borrow the necessary funds to ensure their child can complete their education.

Example 2: A graduate student applies for a Federal PLUS loan to finance their advanced degree program, allowing them to cover tuition and living expenses during their studies. (hypothetical example)

State-by-state differences

State Differences
California Additional state grants may be available for students.
Texas State-specific loan repayment assistance programs may apply.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Federal Direct Loan A loan program where students borrow directly from the federal government. PLUS loans are for parents or graduate students, while Direct Loans are primarily for students.
Stafford Loan A federal loan for students based on financial need. Stafford loans are typically available only to undergraduate and graduate students, not parents.

What to do if this term applies to you

If you are considering applying for a Federal PLUS loan, follow these steps:

  • Determine your eligibility based on your relationship to the student and your credit history.
  • Gather necessary documentation, including financial information and the student's enrollment status.
  • Visit the official Federal Student Aid website to complete your application.
  • Consider using US Legal Forms for templates related to loan agreements and financial planning.
  • If your situation is complex, consulting a financial advisor or legal professional may be beneficial.

Quick facts

Attribute Details
Loan Amount Up to the cost of attendance minus other financial aid
Interest Rate Fixed rate set annually by the federal government
Repayment Period Typically 10 to 25 years

Key takeaways

Frequently asked questions

Parents of dependent undergraduate students and graduate or professional students can apply.