PLUS Loans
Still need additional funds after subtracting financial aid from the actual cost of
attending college? Your parents may be able to borrow up to the cost of your
education each year (less any financial aid) for each dependent student in
college with a PLUS loan.
NOTE: HSBC will discontinue its Federal Family Education Loan program and cease making new loans effective May 31, 2008. No new loans will be processed for the 08/09 academic year.
Ready for an Application?
Please follow the schools process to determine if you
should complete our on-line PLUS Pre-Qualification
and/or the e-MPN.- eSign Online
- PLUS Pre-Qualify!
- New York State Parents
- Other Forms
Sometimes your loans don't quite cover the cost.
The Federal Parent Loan for Undergraduate Students (or PLUS loan) is a federally insured loan from lenders offering an alternative for undergraduate students who may not qualify for other types of assistance, or whose other financing sources are insufficient to cover anticipated education costs.
Effective for loans disbursed on or after July 1, 2006 the PLUS Loan interest rate is fixed at 8.50%. The interest rate for loans first disbursed between July 1, 1998 and June 30, 2006 are variable, not to exceed 9% and subject to change annually on
You should apply for a Federal Stafford Loan first, since the PLUS loan could reduce the amount of Stafford Loan for which you are eligible. Family contribution is not considered for this loan although a credit check is required. Borrowers can take as long as 10 years to repay and payments begin within 60 days of the last disbursement of each loan.
Borrowers who have trouble making monthly payments, or if your child is in school, you may qualify for a forbearance and postpone repayment for up to 12 months at a time to a maximum of 36 months.
Benefits
When your loan enters repayment:
- Effective for new loans disbursed on/after January 1, 2008, you may be eligible to receive 0.50% principal reduction after making 12 initial, consecutive, on-time payments of principal and interest.
Note: HSBC reserves the right to discontinue or modify this benefit program at any time.
