Parent Loans for Undergraduate Students (PLUS) is a loan program sponsored by the federal government to provide an alternative means of financing for undergraduate college students. Parents may borrow up to the annual cost of education less any financial aid offered for each dependent student. 

Repayment on the PLUS loan begins approximately 45 to 60 days after disbursement. Currently, the interest rate is 4.22%  and will vary yearly with a maximum cap of 9%.  Payment of principle can be delayed until students graduate or fall below half-time status.  In this scenario, payment of interest is required.

Parents can start financing their child's education online with a PLUS loan by accessing the following web-site http://www.miami.edu/ofas.  Once on this site, you may choose "Undergraduates", followed by "Loans", and finally "Apply for Loans".  You may also request a paper application through the Office of Financial Assistance.

Advantages of the PLUS loan

• PLUS loans are not based on income or assets.

• PLUS borrowers do not need collateral.

• PLUS loans offer a low variable interest rate that will never exceed 9%.

• PLUS loan interest may be tax deductible.

• Parents may take up to 10 years to repay the loan.

• There is no pre-payment penalty.

• Direct Repay^SM (automatic payment) customers get a 0.25 percentage point interest-rate cut.

Requirements

• U.S. Citizen or permanent resident.

• Parent of a full-time or half-time undergraduate.

• No adverse credit.

Sample Payments for the PLUS Loan Program*

* The interest rate in the chart above is 4.22% (current rate for the PLUS loan). There is a 3% loan origination fee deducted from the loan proceeds. Loan disbursements are electronicatlly sent directly to the University of Miami each semester but only when checked on the PLUS loan application.