Loan Programs
Federal Parent PLUS Loan
The Parent PLUS program provides federally guaranteed loans to help parents with dependent, undergraduate students pay for college-related expenses.
Select each of the options below to learn more:
Federal law requires us to charge a 3% loan origination fee; however, we will credit this amount back to your account upon disbursement of the loan. To begin the Parent PLUS Loan process, apply online or simply download and complete the Parent PLUS Pre-application.
Eligibility Requirements
To be eligible for this loan, a parent must be:
- Creditworthy or able to supply a creditworthy cosigner. Cosigners can download and complete a Cosigner Application.
- In good standing on any other student loan or education grant
- Pre-qualified. Go to our Online Loan Pre-Application. If you qualify, we will notify you immediately
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The natural or adoptive parent, or an eligible step-parent, of the dependent student (legal guardians may not apply)
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A U.S. citizen or permanent resident
To be eligible for this loan, the student must:
- Have a high school diploma or a G.E.D.
- Be enrolled in a certificate or a degree program at an approved school at least half-time
- Make satisfactory academic progress, as defined by the school
Current Maximum Loan Amounts
Disbursement of Funds
Loan funds will be sent directly to the school and made payable to the borrower. The funds will be disbursed according to the dates the school provides us when they certify loan eligibility.Repayment Information
At SC Student Loan, parents can choose to postpone making payments on their Parent PLUS Loan. Once the loan is fully disbursed, the borrower will need to Contact Us to request a forbearance. Repayment will resume when the benefiting student is no longer enrolled on at least a half-time basis.
New: For Parent PLUS Loans first disbursed on or after July 1, 2008, parent borrowers have the option of deferring repayment based on the enrollment status of the dependent student on whose behalf the PLUS Loan was obtained. Parents may Contact Us to defer repayment:
- While the dependent student on whose behalf the loan was obtained is enrolled on at least a half-time basis, and
- During the 6-month period after the dependent student on whose behalf the loan was obtained ceases to be enrolled on at least a half-time basis.
If a Parent PLUS Loan borrower does not request a forbearance or deferment, the first payment on the loan will be due within 60 days after the loan is fully disbursed. During any periods of forbearance or deferment, interest will continue to accrue. Parent borrowers have the option of paying the interest as it accrues or the unpaid accrued interest will be capitalized (added to the principal balance) at the end of this period.
- Standard Repayment Plan
This plan provides substantially equal monthly payments during the life of the loan, not to exceed 10 years ($50 minimum per month). - Graduated Repayment Plan
This plan allows for an increase in your payments every 24 months, providing the greatest relief from the 'cash crunch' of starting your career. - Income-Sensitive Repayment Plan
Monthly payments are adjusted annually based on expected total monthly gross income from all sources. - Extended Repayment Plan
Available for outstanding Parent PLUS loans exceeding $30,000 and first disbursed on or after October 7, 1998, this plan provides an extended repayment period, not to exceed 25 years ($50 minimum per month). You can choose a standard or graduated payment amount.
Interest Rate
The interest rate for PLUS loans is fixed at 8.5%.
Credit Requirements
The review of your credit history will look at the past five years for adverse information including, but not limited to:
- Bankruptcy
- Foreclosure proceedings
- Government claim on a defaulted loan
- Deed in-lieu of foreclosure
- Credit line closed-not paying as agreed
- Lease on contract terminated by default
- Government claim on secured real estate
- Collection account
- Foreclosure
- Voluntary surrender
- Repossession
- County/state/federal tax lien
- Charge-off
- Judgment
- Presently 90 days or greater delinquency on any outstanding debts
The Online Pre-Application Process
- We will obtain and review your credit history.
- You will be notified of your approval or denial by the method of response you indicate on the online form.
- If you appear to be eligible, we will notify your school. We will also give you the opportunity to electronically submit the Application and Master Promissory Note, which must be completed prior to the disbursement of funds.
- Since the amount borrowed may not exceed the cost of education less other aid received, the Financial Aid Administrator at the school will determine whether you are eligible to receive the loan.
- This Pre-Application process does not guarantee eligibility for a loan.
More questions? Contact Us
