Federal Parent PLUS Loans

Fixed 8.5% interest rate for loans made on or after July 1, 2006. Lower this rate up to 2% at repayment with our NC Advantage.

Parents do not have to demonstrate financial need to borrow PLUS loans, but must have a good credit history.

Repayment on a PLUS Loan normally starts once funds are disbursed. If that's a hardship while your student is in school, contact us about an annual forbearance for those college years.

PLUS Loans can be used to pay any educational expenses not covered by other forms of financial aid.

The parent PLUS Loan borrower must meet both federal eligibility requirements and have a North Carolina Connection to borrow from College Foundation. Your connection must be through one of the following means:

You are:

• A resident of North Carolina; or
• A nonresident of North Carolina and the benefiting student is enrolled, or accepted for enrollment, at a North Carolina college or university eligible to participate in the Federal Family Education Loan Program; or
• A previous CFI borrower; or
• A current or former participant or beneficiary in the North Carolina College Savings and Investment Program (provided that, the savings account was not closed due to a rollover to another qualified tuition program); or
• You attended a North Carolina college or university eligible to participate in the Federal Family Education Loan Program.

The maximum annual loan limit is the cost of attendance minus any other financial aid the student qualified to receive.

• For loans approved on or after July 1, 2006, standard charges are a 1% Federal default fee and a 3% origination fee. This means that you normally "net" 96% of the amount you borrow.

• The fixed interest rate for PLUS Loans made on or after July 1, 2006 is 8.5%.
• Repayment normally begins 60 days after the funds are disbursed, and the repayment term is up to 10 years.
• To be eligible to borrow a PLUS Loan, the parent borrower must not have adverse credit.

Nondiscriminatory Policy