Parent Loans

Federal PLUS Loan
The Federal PLUS Program offers parents the opportunity to borrow their portion of educational expenses each year. The PLUS loan is borrowed on an annual basis up to the full cost of education and loan fees each year, less any financial aid. Interest on PLUS loans begins to accrue immediately once the loan is made and repayment must begin within 60 days.

The interest rate on PLUS loans disbursed after July 1, 2006 is fixed at 8.5%.  At the time the loan is made, the borrower is charged an origination fee of 3% of the loan principal.  In addition, the guarantor may collect an insurance premium of up to 1% of the loan principal.  All fees are deducted proportionately from each loan disbursement. There is no income restriction or needs test for the PLUS program. Lenders do require a satisfactory credit check for loan approval. For more information, visit the Federal Student Aid website.

The Key Achiever Loan from Key Bank is available to parents with a good credit history. The variable interest rate is based quarterly on the 3-month LIBOR. Repayment options of up to 20 years are available depending on the amount borrowed.