Direct PLUS (Parent Loan for Undergraduate Students)
These are loans parents may obtain to help pay the cost of education for their dependent undergraduate. The maximum that can be borrowed is equal to the cost of attendance minus any other financial aid received. Interest accrues while the student is in school. There is an origination fee of 4.288 percent of the loan principal that will be deducted proportionately from each loan disbursement. The interest rate is currently 7.21 percent. There is no grace period.
Application process: Students who wish to apply for a Direct Loan must first submit their FAFSA for the relevant year. New Direct Loan applicants must complete entrance counseling and sign a Master Promissory Note at http://www.studentloans.gov before turning in a Direct Loan application. The Federal Direct Loan application can be filed electronically through the CUNY Portal at http://www.cuny.edu. Students must login in order to submit the application.