MONEYSCHOOL'S Simplified Guide
to FAFSA and Federal Student Aid

Section 9: PLUS Loans

Parents of dependent students may apply for PLUS loans to pay for costs not covered by other federal student aid.  (PLUS loans are also available to independent students in graduate and professional degree programs.)  PLUS loans are unsubsidized, and may be originated either as Direct loans or as FFEL loans. 

Interest on PLUS loans accrues from the time the money is disbursed, and repayment begins 60 days after the loan is fully disbursed, although it can be deferred while the student remains in school.  

Unlike the other federal loan programs discussed in previous sections, PLUS loans are subject to credit approval.  The amount of a PLUS loan may not exceed the student’s cost of attendance minus any other financial aid received.   See the chart in Section 10 for annual loan limits, interest rates, and fees.