If a student's parents are interested in obtaining a PLUS loan:

Step 1: Understanding the Federal Parent Loan for Undergraduate Students

Federal PLUS loans are available to creditworthy parents of students enrolled at least half time. The maximum loan amount is the difference between the cost of education and other financial aid.

Effective July 1, 2006, the rate is fixed at 8.5%, and interest begins to accumulate at the time the first disbursement is made. Fees are typically 4% of the principal. Repayment generally begins 60 days after the funds are fully disbursed.

Step 2: Obtaining Your Loan and Requesting Additional Loan Amounts

Decide which of these lenders  you wish to use for the Federal PLUS loan. Review the fees, features, and discounts for these lenders to determine which may be right for you. Different products will have different advantages based on your current situation and your repayment strategy. When you click "Apply here" on the lenders page, you will complete your Master Promissory Note (MPN).