The PLUS loan is a federally sponsored loan for parents/stepparents of undergraduate students. Stepparents are eligible as long as their information is included on the Free Application for Federal Student Aid (FAFSA). Parents borrow the loan from a bank, savings and loan or credit union.

• ELIGIBILITY -

  The maximum eligibility is determined by the Cost of Attendance (Total Expenses on the Financial Aid Offer) minus any financial aid that the student has been awarded. In some cases, the PLUS loan can replace all or a portion of the expected resources. If the student will not be receiving financial aid of any kind, the parent can borrow the full Cost of Education. Please refer to your Offer of Financial Aid for the amount of PLUS that you are eligible to borrow.

• INTEREST RATE -

  The interest rate is fixed at 8.50% on all Plus Loan disbursed on or after July 01, 2006 . Interest accrues on the unpaid balance of the loan from the date of disbursement by the lender until the entire principal balance is paid in full. Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan.)

• LOAN FEES -

  There is a 3% origination fee and up to a 1% insurance fee for a total of no more than 4% that is deducted from each check disbursement. For example, a $10,000 loan will net $9,600. However, repayment of 100% of the loan is required.

• LENDER APPROVAL -

  Approval or denial of the loan is based on the parent's credit history. A parent with adverse credit history may receive a loan by securing an endorser who does not have an adverse credit history. Contact the lender to determine if they have an endorser program.

• REPAYMENT -

  The first payment of interest and principal is due within 60 days after the loan is fully disbursed. The lender will determine a repayment schedule. If, after obtaining a PLUS, the student for whom the parent borrowed drops to less than half time or withdraws during the period for which the loan was intended, the entire amount is immediately due the lender.

• DISBURSEMENT -

  If the loan is a full year loan, the parent will receive one check during the Fall semester and one check during the Spring semester. If the loan is a one-semester loan, the parent will receive one check shortly after the beginning date of the semester. All PLUS checks are mailed directly to SFSU. If the student has no outstanding financial obligations to SFSU, the university endorses the check and mails it directly to the parent. If the student owes money to SFSU, the university mails the unendorsed check to the parent, the parent endorses the check, returns it to SFSU, which in turn deducts all obligations and forwards a balance check to the parent.

• STUDENT ENROLLMENT -

  The student must enroll in and successfully complete a minimum of 6 units per semester. If the student is receiving other types of aid, the unit requirement becomes the same as the requirement of the other types of aid.