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The Federal PLUS Loan is for parents of undergraduate students and
graduate/professional students. While this is a federal loan, Rhode Island
Student Loan Authority (RISLA) offers Rhode Island residents and those attending Rhode Island schools the
Federal PLUS Loan at an interest rate 0.6% less than the federal rate*! Qualifying borrowers may also receive an additional 1% rate reduction
on loans disbursed on or after July 1, 2008 when they enroll to make automatic electronic payments. That means
parents/students who borrow through RISLA can get a PLUS loan at a rate as low as
6.9%!
Eligiblity: Credit worthy parents of
undergraduate & graduate/professional students. Students must be attending
at least half-time.
Interest Rate: The federal interest rate is
fixed at 8.5%. RISLA currently offers this loan at a fixed 7.9%*. Qualifying borrowers
who sign up to make automatic electronic payments get an additional 1% interest
rate reduction on loans disbursed on or after July 1, 2008.
Fees: A one-time 3% origination fee will be
deducted from the loan amount. (i.e. 3% less is disbursed to the
college). A 0-1% default fee may be deducted depending on the
guarantor. (i.e. 1% less is disbursed to the college).
Loan limits: You may borrow up to the cost of
education minus any other financial aid.
Repayment: Repayment begins within 60 days after the loan is fully disbursed. The repayment term is up to 10 years (extended repayment up to 25 years available for borrowers with balances greater than $30,000).
Graduate students can make no payments while in school. Interest accrues during this period.
Parents can choose to delay payments until 6 months after the student leaves school or drops below half-time status.
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0.6% lower interest rate
than the federal rate
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1.00% interest rate
reduction for automatic electronic payments via ACH (on loans disbursed on or
after July 1, 2008).
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Graduate & professional students make no payments while in
school.
PLUS loans require credit approval
* If you are not a Rhode Island resident and you/your child are not attending a Rhode Island institution of higher education, your borrower benefits may be different. Click here for more details.
RISLA reserves the right to modify or terminate
borrower benefit programs at its discretion and without prior notice.
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