Federal Parent PLUS Loans

The federally sponsored PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, you can fund the entire cost of your child's education (minus other financial aid) and defer payments until after they graduate.

PLUS loans are a great way to help your son or daughter finance the education they need.

Consider the following consumer-friendly features of a PLUS loan:

• PLUS loans have no income or collateral requirements.
• Flexible repayment options offer you a wide variety of choices.
• Interest may be tax-deductible.¹
• There is no prepayment penalty.

Repayment options for Parent PLUS Loans

Parents with a PLUS loan first disbursed on or after July 1, 2008, have two repayment options. Payments may begin either:

• Within 60 days of the loan being fully disbursed.
• Six months after the dependent student graduates, leaves school or ceases to be enrolled at least half time.

Interest will be charged beginning on the date of the first loan disbursement. Interest can be paid as it accrues or it will be added to the loan's principal balance upon repayment.

Obtaining your PLUS loan through Chase is the right choice:

• We offer savings — 0.25% interest rate reduction for having monthly payments automatically deducted from your bank account (ACH) by Chase.*
• As one of the nation's leading financial institutions, Chase is a company you can trust.
• We offer a quick, easy application process - either online or by phone.
• Our team includes highly-trained service representatives who can advise and assist throughout the process.
• We provide exceptional security for your personal information.

You can apply online for a PLUS loan with Chase or review our Frequently Asked Questions to learn more.

1. Consult your tax advisor for information.

*Important Information: For PLUS loans disbursed between July 1, 2008, through June 30, 2009, the statutory interest rate is 8.50% and a 3.00% origination fee is forwarded to the U.S. Department of Education. If the loan guarantor subsidizes some or all of the 1.00% default fee, Chase borrowers will receive this benefit. For loans that are guaranteed on or after June 1, 2008, the 0.25% interest rate reduction is available to borrowers in repayment who elect to have their monthly payments automatically deducted from a bank account. This interest rate reduction will begin when the borrower enrolls and begins having payments automatically deducted by Chase and will remain in effect as long as automatic payments continue without interruption. The reduced interest rate will return to the non-discounted rate if automatic payments are cancelled, rejected or returned for any reason or during periods of deferment or forbearance. The 0.25% interest rate reduction will not lower the monthly payment amount but instead will reduce the interest that accrues, thereby reducing the total amount repaid and the time in which the loan is repaid. Chase may sell this loan to the U.S. Department of Education, and the U.S. Department of Education may continue to honor this automatic payment interest rate reduction. Terms and conditions apply. Benefit programs are subject to change. Loans are subject to submission of a completed application, credit approval and other required documentation and verification, as applicable. This information was correct as of 06/01/08.