What is a PLUS Loan?
Effective July 1, 2008 Washburn University will participate exclusively in the Federal Direct PLUS Loan program. Federal PLUS Loans are available to parents and/or step-parents with a good credit history to help pay for the education of a dependent undergraduate student who is enrolled at least half-time. The interest rate for the PLUS loan is fixed at 7.9% effective July 1, 2006. Loan fees up to 4% may be deducted from your loans by the government. All loan funds are disbursed in two equal amounts. Funds are disbursed prior to the beginning of each semester and applied to charges on the student’s account. Repayment begins 60 days after the date of the second disbursement, or the parent may request delayed repayment until six months after the student is no longer enrolled at least half-time. (Interest may be repaid or capitalized upon the loan entering repayment.). If a credit balance occurs, a check is issued to the parent who applied for the loan unless a signed authorization from the parent requests the balance to be issued to the student. Parents may borrow up to the total cost of attendance less any student aid received.
PLUS Master Promissory Note
The PLUS Master Promissory Note (MPN) provides an easier application process because the student signature is not required. And you may borrow under one MPN for up to 10 years, which means you may only have to complete it once for each child.However, a credit check is conducted each year that you accept a PLUS loan. Simply apply and e-sign your MPN online at https://dlenote.ed.gov/empn/index.jsp.
Features and Benefits
- PLUS funds may cover the full cost of education—including tuition & fees, room & board, books & supplies, transportation costs, and living allowance
- Available to parents of dependent undergraduates regardless of income or assets
- Requires no collateral.
- Fixed interest rate at 7.9%.
- Repayment begins 60 days from the date of the second disbursement.
- For many parents, interest is tax deductible. Check with your tax advisor for details.
Washburn University PLUS Estimated Eligibility*
| Total College Cost | $17,085 |
| Less Estimated Student Financial Aid * | - 9,250 |
| Equals PLUS Loan Eligibility | $ 7,835 |
*Estimated Student Financial Aid assumes a $3500 subsidized Stafford Loan, $2000 unsubsidized Stafford Loan, $3250 Federal Work Study, and $500 Academic Scholarship.
Flexible Repayment Options
- Standard Principal and Interest Plan
- Payment Plan based on Income
- Payment Plan with payments that may be as low as interest-only while the student is in college
- Payment plan with payments deferred until the student graduates or drops below half-time attendance.
- Interest rate reductions in repayment for signing up for automatic monthly payments from a checking or savings account.
Loan Interest Rates
Loans First Disbursed on or After July 1, 2006
| Loan Type | Grade Level | Program | |||
| Direct Loans | FFEL | ||||
| 7/1/2006 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
7/1/2006 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
||
| Subsidized Loans | Undergraduate | 6.80 | 6.00 | 6.80 | 6.00 |
| Graduate | 6.80 | 6.80 | 6.80 | 6.80 | |
| Unsubsidized Loans |
Undergraduate | 6.80 | 6.80 | 6.80 | 6.80 |
| Graduate | 6.80 | 6.80 | 6.80 | 6.80 | |
| PLUS Loans | All | 7.90 | 7.90 | 8.50 | 8.50 |
Variable Rates for Loans First Disbursed Between July 1, 1998 and June 30, 2006
These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 27, 2008, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 1.905 percent, rounded to 1.91 percent.
| Loan Type | Status | Program | |||
| Direct Loans | FFEL | ||||
| 7/1/2007 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
7/1/2007 to 6/30/2008 |
7/1/2008 to 6/30/2009 |
||
| Subsidized Loans | Repayment or Forbearance |
7.22 | 4.21 | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | 6.62 | 3.61 | |
| Unsubsidized Loans |
Repayment or Forbearance |
7.22 | 4.21 | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | 6.62 | 3.61 | |
| PLUS Loans | All | 8.02 | 5.01 | 8.02 | 5.01 |
- Notes:
- Interest rates on Stafford and PLUS loans disbursed before July 1, 1998, are calculated using different statutory formulas, percentage add-ons, or both.
- Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.
Washburn University
1700 SW College
Topeka, KS 66621
Phone: (785) 670-1151
Toll-Free: 800-524-8447
financialaid@washburn.edu
