The Federal PLUS Loan is a loan that a parent can borrow for their dependent undergraduate student. This loan is limited to parents with favorable credit history and enables the parent to borrow up to the cost of the student’s education less any other aid received by the student. Repayment of the loan begins after it is fully disbursed to the school. The interest rate is variable and the current maximum interest rate on the loan is 9%. Parents will be obligated for a 3% origination fee on each Federal PLUS Loan received.
All Federal Loans require a separate promissory note application available from NYIM or a participating lender.