Federal Parent PLUS Loans

Fixed 8.5% interest rate for loans made on or after July 1, 2006. Lower your rate with the 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.

To borrow a Parent PLUS Loan from College Foundation, Inc. (CFI), the prospective borrower must have a North Carolina Connection as well as meet federal loan requirements. The required connection is established by the parent meeting at least one of the following:

You are:

• A resident of North Carolina; or
• Borrowing for a student who 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 in the North Carolina 529 college savings plan; provided that, the savings account was active on or before June 1, 2008 and not closed due to a rollover to another qualified tuition program; or
• Borrowing for a student who is a current or former beneficiary in the North Carolina 529 college savings plan; provided that, the savings account was active on or before June 1, 2008 and not closed due to a rollover to another qualified tuition program.

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

• For loans first disbursed on or after July 1, 2006, standard charges are a 1% federal default fee and a 3% origination fee; however, no federal default fee is charged on a PLUS Loan from CFI -- which saves you money.
• 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