Financial Aid
Federal Parent Loan for Undergraduate Students (PLUS)
PLUS Loan Checks, Interest Rate, Repayment

Plus Loan Checks

PLUS loan disbursements always come in the form of a paper check from the lender payable to the parent borrower and Cedar Valley College. PLUS checks are mailed to the school made payable to both the school and the parent. All checks are then mailed to the parent certified/Return receipt unless other arrangements are made in advance. All loans are disbursed on a 30 day delay.

Interest Rate

The interest rate on PLUS Loans could change each year of repayment but does not exceed 9%. For July 1, 2007 to June 30, 2008 , the interest rate for the PLUS Loans in repayment is 8.02%. Interest rates are adjusted each year on July 1st. Parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

Repayment

Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while the student is in school. Under certain circumstances, parents can receive a deferment or forbearance on their loan, as long as it is not in default. Generally, the same deferment or forbearance provisions that apply to Stafford Loans also apply to PLUS Loans. Since PLUS Loans are unsubsidized, however, parents will be charged interest during periods of deferment. If they don't pay the interest as it accrues, it will be capitalized.