Definitions for "FEDERAL PLUS LOAN"
A loan for parents to fund a child's education.
Parents may borrow from this education loan program on behalf of their dependent children. Loans are made by lenders such as banks, credit unions, or savings and loan associations. Compare FEDERAL DIRECT PLUS LOAN.
Federal loans for parents of undergraduate students, available from lenders who participate in FFELP or the Direct Program. Parents may borrow up to the total cost of education minus any student aid awarded. Interest rate is variable, based on the 52-week Treasury bill rate as of July 1 prior to the academic year, plus 2.64%, with a cap of 9%. Loans are made without regard to financial need but borrowers must demonstrate that they do not have an adverse credit history. Repayment generally begins within 60 days of the fully disbursed loan. These loans must be repaid.