Federal Plus Loans
The Federal Plus Loan is a loan for parents that want to help pay for their child’s education. This loan program allows the parents to borrow up to the difference between the child’s educational costs and other financial aid each year from Univest National Bank & Trust Co. through the Federal PLUS Program. Unlike the Federal Stafford Loan, it is not necessary to complete the FAFSA (Free Application for Federal Student Aid) prior to applying.
Loan Amounts
The parent may borrow up to the total educational cost for the year minus any other financial aid the student is receiving.
Interest Rate
The interest rate is set annually by the federal government on July 1st. The interest rate is based on the 91-day Treasury Bill, plus 3.1% for the in-school period and for the repayment period. The rate cannot exceed the maximum cap of 9.00%. (The current interest rate for loans disbursed on or after July 1, 2007 is 8.50% fixed.)
Fees
Origination Fee: 3% (Fee forwarded to the Federal Government.)
Guarantee Fee: 1% (PHEAA waives this fee.)
Repayment Schedule
The repayment of the PLUS Loan begins 60 days after the funds are disbursed. The parents have the ability to take up to 10 years to repay the loan.
For more information, call or visit any one of our convenient Financial Service Centers located throughout Bucks and Montgomery Counties.