Plus Loan Information
Federal PLUS loans allow parents of dependent undergraduate students to borrow up to the annual cost of education minus any financial aid. In addition, this program also allows graduate students to borrow up to the annual cost of education minus any financial aid. PLUS loans are not based on financial need, but do require a good credit history. There is a 10-year repayment schedule and deferment options do exist. For graduate students, payments are automatically deferred while in school.
The data from your request form will be used to create an electronic certification. When your electronic certification has been accepted, you will be mailed a Master Promissory Note (MPN). Please return the completed MPN to the Department of Education as soon as possible.
When PLUS Loan funds credit the student’s account, the actual disbursement will be less than the original amount of the award because of the deduction of loan origination and default fees.
If there is a credit balance on the student’s account after all charges for the semester have been paid and the credit was created by PLUS Loan proceeds, the balance will be returned to the parent borrower or the student as you have indicated on the request form. However, funds will not be available before the first day of classes for each semester, since the enrollment status of the student must be verified before funds can be released.
PLUS Loan Terms:
- Interest Rate: 7.9% for loans disbursed on or after 7/1/2010
- Origination Fee: 4.0%
- Up Front Interest Rebate*: 1.5%
- Net Disbursement after Fees*: 97.5% of loan amount
- Standard Repayment Terms: The standard repayment term is 10 years, and repayment begins 60 days after the loan has fully disbursed.
- Deferment Options: Loan can be deferred while the student is enrolled at least half-time, and for 6 months after the student graduates or drops below half-time enrollment.
For more information regarding Parent PLUS Loan eligibility and repayment visit Parent Plus Loans.
For more information regarding Graduate PLUS Loan eligibility and repayment visit Graduate Plus Loans.
To determine the estimated monthly payment for your PLUS Loan use a repayment calculator at CFNC.org.
*An origination fee is deducted from your loan disbursement. The origination fee is 4.0% on PLUS Loans. However, as a Direct Loan Borrower, you receive an upfront interest rebate equal to 1.5% of a PLUS Loan. The upfront interest rebate reduces your origination fee, however to retain the interest rebate, you must make the first 12 consecutive payments of your Direct Loan on time. If you do not make the first 12 consecutive payments of your Direct Loan on time, the interest rebate will be added back to your loan.
If you have questions regarding the Federal PLUS Loan, please contact the Office of Financial Aid (336) 750-3296.
To request a Parent or Graduate PLUS Loan, complete an application and return it to
Office of Financial Aid
Winston-Salem State University
601 S. Martin Luther King Jr. Drive
Winston-Salem, North Carolina 27110
Fax to: (336) 750-3297
Visit Student Loan to complete Graduate PLUS Loan entrance counseling.