If you have a dependent in college, you may be eligible for college loans through the Federal Parent PLUS Program (PLUS). Before you apply for PLUS, examine your child’s eligibility for grants, work-study programs or loans with competitive interest rates. You can also use consumer loans to finance your child’s education. For more information, contact your lender or college financial aid administrator.

How Much Can You Borrow?

Up to the student's cost of attendance, minus any other financial aid. There is no limit on the aggregate amount.

What Do These Loans Cost?

The interest rate on PLUS Loans made after July 1, 2006 is fixed at 8.5%. The rate on PLUS Loans made prior to July 1, 2006 varies based on US Treasury Bill rates and is subject to change annually. Under present law, this variable rate cannot exceed 9%. Each loan also carries an origination fee of 3% and a federal default fee of 1% of the amount borrowed. The lender deducts these fees from disbursements sent to the college.

Who Is Eligible?

All parents and some stepparents are eligible to apply for a PLUS Loan regardless of income, as long as they have a good credit history. Additionally:
  • Your child must qualify as your dependent.
  • You and your child must be U.S. citizens, nationals, permanent resident aliens, or other eligible non-citizens.
  • You or your child cannot be in default on any Title IV student loan or owe a refund on any Title IV grant.
  • If your child plans to attend an out-of-state college, you must be a legal resident of New York State for the 12 months before the loan’s academic period begins, in order for HESC to guarantee the loan.
  • Your child must be accepted or enrolled (at least half time) in an undergraduate program leading to a degree, certificate, or diploma at an eligible college or school.
  • Your child must maintain satisfactory academic progress.
  • Your child must comply with applicable Selective Service requirements.

How Do I Apply?

Use HESC’s PLUS Master Promissory Note or get a PLUS application from the college. After you have completed the borrower section and your child has completed the student section, send the application to the college’s Financial Aid Office. The college will complete the school section and forward the application to your chosen lender.

How Are the Funds Disbursed?

Your lender sends installments of PLUS Loan funds to the college, which applies them to your child’s account for education expenses (tuition, room and board, etc.). Then the college sends any remaining funds directly to you — or, with your permission, adds them to your child’s school account.

When Do I Start Repayment?

The first payment is due within 60 days from when the loan is fully disbursed (when the lender sends the final disbursement to the college). Interest, however, begins accruing on the day of the first disbursement. While you can capitalize the interest — that is, add it to the principal — you should pay it whenever possible. Parents can choose to defer repayment until six months after the student ceases to be enrolled at least half time. You can also include PLUS Loans in the Federal Consolidation Loan Program. Discuss loan consolidation with your lender.

Deferments to delay repayment are available to eligible borrowers through your lender or their loan servicer.

Sample Repayment Schedule - 8.5%
Loan Amount# of Monthly PaymentsMonthly PaymentTotal Paid
$5,000120$61.99$7,438.80
$7,500120$92.99$11,158.80
$10,000120$123.99$14,878.80
$15,000120$185.98$22,317.60
$20,000120$247.97$29,756.40