PLUS (Parent Loan for Undergraduate Students) Loans are loans offered to parents of students enrolled full-time at American institutions of higher education. PLUS loans are similar and different from Perkins and Stafford loans in various respects:

Student Loan Information: Inside
[ Loans for Higher Education ] [ Private Student Loans ]
[ Disbursement ] [ Perkins Loan ] [ Stafford Loan ]
[ College Consolidation Loan ] [ PLUS Loan ]

* Offered under Title IV of the Higher Education Act of 1965 (with subsequent amendments), and are therefore backed by the full faith of the United States Government
* Available both through the Federal Direct Student Loan Program) (FDSLP, also known as Direct) or from a private lender through the Federal Family Education Loan Program (FFELP)
* Can be consolidated through the College Consolidation Loan program

* Become due for repayment immediately, and there is only interest rate term
* Are a commitment by the parent, rather than the student
* Are subject to higher interest rates
* Can be incurred in amounts that cover up the entire cost of education, less other financial aid
* Offer different repayment plans, though there is no interest rate or accrual relief involved in any of the plans
* Eligibility is based on the parents' not having an adverse credit history

Like the Stafford loan program, the PLUS program changed to a higher, but fixed-rate structure for loans disbursed after midnight, July 1, 2006. The rate offered through the Direct channel will be 8.5%, and FFELP loans will be the same, though price competition may result in lower rates and incentives.