Federal parentplus Loan Program

Many parents dream of sending their children to college. Our Federal parentplus Loan Program can help you get there. With a parentplus Loan, the parent is the borrower.

• A parent may borrow on behalf of their dependent undergraduate student(s) enrolled at least half-time in an eligible program.
• Eligibility for Federal parentplus loan is not based on financial need.
• You must not have an adverse credit history as defined in the federal regulations.
  Adverse credit history may include:
  • The applicant is 90 days or more delinquent on the repayment of any debt.
  • The applicant has had any debt discharged in bankruptcy during the 5-year period before the date of the credit report.
  • The applicant has been the subject of a default determination on any debt, a foreclosure, a tax lien, a repossession, a wage garnishment, or a write-off of a Title IV debt during the 5-year period before the date of the credit report.
  • A loan that has been discharged as the result of a closed school or false certification claim may not be considered to represent adverse credit.
  
  If you have had prior credit concerns or prior financial problems, we strongly encourage you to still apply. IDAPP staff of trained credit professionals are highly skilled to review your credit history on the credit report and can assist in the processing of your request. The credit reports are personally evaluated and we may make suggestions that will assist you in the processing of your loan.
  

• The financial aid administrator at the college your dependent is attending determines and certifies the loan amount.
• Although individual lenders may have borrowing limits, IDAPP does not impose borrowing limits on parentplus loans.

• Repayment begins shortly after the funds are disbursed.
• The repayment terms can be up to ten years.

• The Current interest rate for new parentplus loan is a fixed rate of 8.50 %. Interest will accrue from date of first disbursement.
• Previous Federal parentplus Loans (disbursed prior to 6/30/06) have a variable interest rate and are adjusted annually on July 1, currently set at 5.01 %, and is based on the 91-day Treasury Bill +3.1%. These loans cannot exceed 8.02 %.