Student Financial Aid

PLUS Loans

 

What are PLUS loans?

This federal loan is for parents of dependent undergraduate students or graduate students and is not based on financial need. This loan can help the student cover any educational expenses not covered by other financial assistance. Students must be in a degree seeking program. This loan can help you (the parent or the student) meet the costs of a college education. The decision to approve or deny the loan is based on the results of a credit check that is conducted by the US Department of Education.

Undergraduate Federal Parent PLUS Loans 

Who Is Eligible?
Parents, adoptive parents, and stepparents of dependent undergraduate students attending college at least half time (6 credit hours) in a degree seeking program are eligible for PLUS loans. Borrowers must be U.S. citizens or eligible residents. Loan approval is subject to credit criteria established by the U.S. Department of Education. A credit report will be obtained by your lender from a national credit bureau once you apply.

Borrowing Limits
An UM-St. Louis parent may borrow up to the total annual cost of education, including educational fees, books, living and travel expenses, less any financial aid for which the student is eligible. The Student Financial Aid Office will determine your amount of loan eligibility.

Application Process

For more information regarding Parent PLUS loans visit the U.S. Department of Education.

Graduate Federal PLUS Loans

Who Is Eligible?

Graduate students who qualify for federal financial aid, are enrolled at least half-time (5 credit hours), and have educational expenses not covered by other financial assistance, such as the Stafford Loan. A credit check will be performed on the student applicant to make sure that the student.

Borrowing Limits

A student may borrow up to the difference between the total annual cost of education, including educational fees, books, living and travel expenses, and any financial aid for which the student is eligible. The student must receive his or her maximum Stafford eligibility for the year before taking advantage of the graduate PLUS Loan. Some students may find that they do not qualify for the graduate PLUS because their total cost of attendance does not exceed the Stafford loan maximum. Please contact our office if you have questions about the amount for which you might qualify.

Graduate PLUS loan or Alternative Loan?

Unlike the alternative loans, the Graduate PLUS can be consolidated with the student's Stafford Loans after graduation, which would allow the student to keep all loans with one holder and has the potential of greatly reducing the student's monthly loan payment. Since the various alternative loan programs have different interest rates and loan terms, it's good to compare those terms when choosing a loan. Some things to consider are the length of the repayment period, the interest rate formula and frequency of interest capitalization (does interest get added to principal quarterly, annually, at start of repayment?), origination fees (3% for Graduate PLUS)and eligibility for forbearances and deferments.

 

Application Process

For more information regarding Grad PLUS loans visit the U.S. Department of Education.