Federal Direct Parent Loan for Undergraduate Students (PLUS)
The Federal Direct PLUS Loan can be borrowed by a student's parent(s) to assist in the funding of a Luther College education. The following are highlights of this program:
- Easy application and convenient in-school processing for quick disbursement
- Two-step process for new borrowers (completion of application and Master Promissory Note)
- One-step process for repeat borrowers (completion of application only)
- Master Promissory Note allows for added borrowing without signing a new note
- Loans range up to the total cost of college, including travel and personal expenses
- Parent must not have an adverse credit history
- Unsecured loan, not based on family income
- Loans borrowed on or after July 1, 2006 - fixed 7.9% interest rate (Loans borrowed prior to July, 2006 - variable interest rate with a 9% cap; set annually)
- Low net origination fee of 2.5%
- Payments begin 60 days after loan is fully disbursed for the loan period borrowed
- Parents may request deferment of payments while the student is enrolled by contacting the Direct Loan Servicing Center
- Standard repayment up to 10 years with extended repayment options
- Able to consolidate with other PLUS loans to a low fixed rate
- Death/disability loan forgiveness for borrower