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Federal PLUS Loan

Program Description

The Federal PLUS Loan is a credit-worthy loan for the parent or legal guardian of a dependent student (Federal PLUS) or a graduate student (Federal Graduate PLUS) who has borrowed the maximum amount of Federal Stafford Loan assistance. If you are a dependent student, your parent(s) can borrow up to your cost of education less all other financial aid received. Graduate students are also eligible to borrow up to their total cost of education less all other financial aid received. Federal PLUS Loans are not based on need but rather the borrower's creditworthiness. Villanova parents who wish to apply only for a Federal PLUS Loan are asked to complete the Villanova Application for PLUS Loan application and the Federal PLUS Loan Master Promissory Note (MPN).   

Graduate students who wish to apply for a Federal PLUS loan need to complete the FAFSA and a Villanova University Institutional Financial Aid Application in order to first determine Federal Stafford Loan eligibility.

Lender List

You may select any lender or guarantor that participates in the Federal PLUS loan program.  However, listed below are participating lenders who have a proven commitment to the Federal PLUS Loan program and who have consistently demonstrated superior customer service.

Federal PLUS Loan/Federal Graduate PLUS Loan

Chase Bank (JP Morgan Chase Bank N.A.)

Citizens Bank

PNC Bank

Sallie Mae Education Trust

Wachovia Education Finance

Wells Fargo Bank

Loan Amounts

Parents and Graduate students can borrow up to an amount equal to the cost of attending Villanova, less any other financial aid received. This would include grants, scholarships, and other loans including the Federal Stafford Loan. Since interest is not paid by the Federal Government, family income has no impact on how much you can borrow.

Fees

The Federal Origination Fee of 3% is deducted from your loan at disbursement. The Guarantee Agency may elect to waive the 1% Default Fee.

Interest Rates

All loans disbursed on or after July 1, 2006 will be subject to a fixed interest rate of 8.50%.

Repayment

For parents of dependent undergraduate students, repayment normally begins within 60 days after the loan has been fully disbursed. However, some lenders may allow parents to delay their payments while the student is enrolled at least half-time for up to 4 academic years.   Carefully review this option when selecting your Federal PLUS loan lender.

Graduate students will automatically receive an in-school deferment while they are enrolled at least half-time. Once you graduate, or drop below half-time status, repayment will begin within 60 days after your enrollment status has changed.

Federal PLUS Endorser

If the parent borrower is ineligible because of an adverse credit history, the parent may obtain an "Endorser" for the loan. The "Endorser" must be a creditworthy US citizen or eligible non-citizen. Basically, the "Endorser" will be acting as a co-applicant for the parent on the loan. Therefore, the "Endorser" must meet the same credit criteria as the parent borrower. In most cases, the ability to pass this credit criteria is less stringent than qualifying for a private loan. For more information contact your Federal PLUS loan lender.