More information:
Eligibility for these loans is not based on household income, so parents at all income levels are welcome to apply. Applicants will be required to pass a credit check based on the criteria established by the U.S. Department of Education.
In some cases, the student's school may also require that a Free Application for Federal Student Aid (or FAFSA) is submitted to the Department of Education. Check with the school's financial aid office for more information.
In addition:
- Student must qualify as borrower’s dependent
- Both parent and student must be U.S. citizens, nationals, permanent resident aliens or eligible non-citizens of another type
- Student must be accepted or enrolled (at least half time) in an undergraduate program leading to a degree at a U.S. Department of Education-approved school
- Student must maintain satisfactory academic progress
For each undergraduate child, parents may borrow up to the student's cost of attendance minus all other financial aid awarded. The cost of attendance may include tuition and fees, room and board, books and supplies, transportation, and miscellaneous expenses. The student's school will determine and certify this amount.
Once the loan is approved, the funds will be sent to the school. In most cases, PLUS Loans must be disbursed, or given out, in at least two installments. Loans are either made co-payable to both the parent and the school or transmitted directly to the school, with any remaining funds credited to the student's account.
Two fees are deducted from the loan funds and are included in the amount a student will pay back. The U.S. Department of Education charges an origination fee of 3%, and the loan guarantor charges a federal default fee of 1%. The default fee will be waived if the participating guarantee agency selected by the borrower will pay the fee.
Repayment of the Federal PLUS Loan begins within 60 days after the loan is fully disbursed and usually extends up to ten years. The payment amount is based on the total amount owed, but must be at least $50 per month. Payments may be deferred while the dependent child is enrolled at least half time.2
For more information, contact our customer service center to speak with one of our student loan specialists at 1-800-762-1001, Monday through Thursday from 8am to 7pm and Friday from 8am to 6 pm Eastern time.
1The interest rate reduction benefit is lost if automatic payment deduction is discontinued.
2While you are in deferment, interest will continue to accumulate on your loan. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment period.
PNC reserves the right to modify, expand or discontinue the discount terms of this program at any time without notice. Loans may be sold to other financial organizations including the federal government. The interest rate and term of the loan will not change if a loan is sold.