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Federal PLUS Loan

New Unsubsidized Stafford Loan Eligibility for 2008/2009

Apply online for a Federal PLUS Loan

The Federal PLUS Loan provides a borrowing option for parents of dependent undergraduate students. Based upon the borrower’s creditworthiness, a parent may borrow from this federally guaranteed, non need-based loan program.

Terms for loans, which are subject to revision by federal regulation, include:

Fixed interest rate of 8.5% Up to 3% origination fee and up to 1% federal default fee Repayment of both principal and interest usually begins within 60 days of full disbursement of the funds; parent borrowers may request a delay of repayment, called forbearance, from the lender, once per year for the years the student is enrolled as an undergraduate Parents may apply for up to the full cost of education for the school year minus all other student aid

The University provides borrowers with a list of suggested Federal PLUS Loan lenders. These lenders have established themselves as quality institutions based upon efficiency in loan origination, responsiveness to questions, quality of servicing, and long-term participation and commitment in federal loan programs. Although the University provides a list of suggested lenders, borrowers are free to choose any lender participating in the Federal Family Education Loan Program.

The basic provisions for loans offered by the suggested lenders are consistent with all federally insured education loans. In addition, these lenders participate in Notre Dame's electronic application and fund transfer process. This participation provides a superior service in terms of processing and delivery of funds.