Basic Information

• The Federal Parent PLUS Loan is available to parents to use to pay for their child’s education. For families looking for long-term financing at a low rate, this is a loan you may wish to consider.
• The Federal Parent PLUS Loan is for undergraduate students only, but must be taken out in the parent’s name. (The parent must be a U.S. citizen or eligible non-citizen.) This loan is not based on the student’s financial need. No collateral is required.
• The student must be considered a federally dependent undergraduate; be enrolled at least half-time; submit all required documents; and maintain Satisfactory Academic Progress.
• The parent must meet the federally-established credit criteria or apply with an endorser who meets the credit criteria. (Your lender will perform a credit check.)
• The current (2008-2009) interest rate is fixed at 8.5 percent. There is no penalty for early repayment.
• If needed, the loan must be reapplied for each year.
• If the parent is ineligible for the Parent PLUS, the student may be eligible to take out an additional $4,000 or $5,000 Unsubsidized Federal Stafford Loan. Contact the Financial Aid Office for more information.

To qualify

The parent and student must be U.S. citizens or eligible non-citizens, and the parent’s credit must be free of the following adverse items:

• Currently 90 days or more delinquent on repayment of any debt
• Debt discharged in bankruptcy during the past five years
• Evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past 5 years

How To Apply

• If the student did not apply for need-based financial aid, fax a Supplemental Form for Undergraduate Students to the Financial Aid Office. (For faxing instructions, visit www.usc.edu/contactfao) Otherwise, go to Step 2.
• 2008-2009 Supplemental Form for Undergraduate Students
• Select any lender, and apply online. (After you are approved by the lender, the Financial Aid Office will be notified and the loan will be certified.)
• If you choose a lender not listed on this page, fax a Parent PLUS Loan Request Statement form to the Financial Aid Office. (For faxing instructions, visit www.usc.edu/contactfao)
• Parent PLUS Loan Request Statement
• Fax a completed Parent PLUS Loan EFT Authorization Form to the USC Cashier's Office at (213) 740-0835. (If you apply for more than one PLUS, you must submit a separate EFT form for each loan.)
• If you need to complete a Parent PLUS Loan Master Promissory Note (MPN), your lender will contact you. The MPN is valid for all PLUS loans with this lender for up to 10 years.

Benefits of the Federal Parent PLUS Loan

• You do not need to fill out a Free Application for Federal Student Aid (FAFSA) form to borrow
• You do not need to submit your tax returns to the Financial Aid Office
• Borrow up to the full cost of education — tuition, mandatory fees, room and board, books and supplies, and even transportation, less other aid received
• Either parent may apply for the loan, or both parents may apply for separate Parent PLUS loans
• Fixed rate
• No prepayment penalty
• No income-to-debt ratio
• Credit check is less strict than private student loan
• Parents who do not meet the credit requirements may apply with a co-signer (called an “endorser”)
• Postpone payments up to 60 months while student is in school
• Payment Flexibility: income-sensitive, graduated and extended payment options
• Accrued interest capitalizes once at repayment
• Federally insured against death and disability

Parent PLUS Lenders

Students and families may borrow from any lender.

USC has analyzed all known lender programs of this type offered to USC students. The terms of the analysis included, interest rates, fees, repayment duration, and other repayment options. Based on this analysis the lender programs were ranked and the rankings were reviewed by an independent accounting firm.

The top 11 lender programs for the Parent PLUS Loan, based on the analysis described above, are displayed on this page in alphabetical order. Bear in mind that USC does not endorse or recommend specific lenders. For more information, contact the Financial Aid Office at www.usc.edu/contactfao.

Click here to view the Parent PLUS lender comparison 2008-09