An eligible parent is the biological or adoptive parent of a dependent student, as defined by the FAFSA.Step-parents are eligible to borrow under the PLUS program if the student is a member of the step-parent's household, and the step-parent's income and assets would be considered if the student files a FAFSA.

The application process for the Parent PLUS loan is web-based and should be completed by following the instructions on the lender's web page. Please review the terms and conditions as explained on each lender's web page. Additionally, you will receive a disclosure statement from your lender outlining the terms of your loan.

Many banks and other lending institutions participate in the Federal Family Education Loan Programs and students and parents have the right to choose their lender. Since these are federal loans, the federal government controls the interest rate and eligibility criteria, so the interest rate, amount of eligibility, and repayment terms will be the same no matter which lender you pick. You may wish to use the same lender that the student has selected for the Stafford Loans to keep everything together, but you are not required to do so.

Like many parents, you may be unfamiliar with the issues involved in making a lender choice. In order to help you make a good decision, the Office of Student Financial Aid and Scholarships has compiled a listing of lenders that families have used over the past three years.  The listing will always be in random order each time it is viewed.  There is no significance attached to where a lender falls in the listing.  You are not required to select one of the lenders from the listing.  You may want to use a different lender and are free to do so.  The choice is yours.

  Suntrust
  College Foundation
  PNC (formerly National City)
  South Carolina Student Loan Corporation
  Citibank
  Wachovia, a Wells Fargo Company
  Regions
  Sallie Mae
  Nelnet
  Discover
  Navy Federal Credit Union
  National Education

As a final caution, please keep in mind that, due to future market conditions, your lender could decide to suspend any of its programs or discontinue/change any of the benefits it may offer. You are responsible for selecting a lender. Your lender, rather than the University of South Carolina, is solely responsible for any programs or discounts the lender offers.

Parents must pass a credit check with their lender. If they don't pass, they may still be able to receive a PLUS loan if they can demonstrate that extenuating circumstances exist, or if they have an endorser who is willing to cosign the loan with them. Additionally, the student must meet the general eligibility requirements for federal student aid and parents must meet some of these general requirements, such as being US citizens or eligible noncitizens as well as not be in default or owe a refund to any federal student aid program.

A family is not required to complete a FAFSA in order to apply for a PLUS loan, though the University of South Carolina encourages its completion to determine eligibility for any need based aid such as grants. If a family chooses not to complete a FAFSA, then our office will request the family to complete a PLUS Dependency Form.

Currently, the interest rate is fixed at 8.5% for the PLUS loan.

Lenders are required to charge at least 3%--and may charge loan fees up to 4%--of the scheduled disbursement amount. This rate varies by lender and is subject to change. Please note that prior to disbursement the loan amount listed on your account does not necessarily reflect loan fees deducted from your disbursement by your lender.For example, if your award is $1,000 and your lender assesses a 4% loan fee, the net disbursement will be $960.

Parents may borrow up to the cost of their student's education, as determined each year by the Office of Financial Aid and Scholarships, less any other aid the student may receive, including grants, loans, and scholarships.

Unless otherwise indicated by the PLUS loan application, the PLUS loan will be issued in multiple disbursements during the academic year. If you plan to enroll for both fall and spring, the PLUS loan will be issued in two equal disbursements (one disbursement per term). If you plan to enroll for only one term, either fall or spring, your Stafford Loan will be issued to you in one disbursement, the amount to be determined by your eligibility.

It may take up to seven days after your parent's lender sends the school certification request until it shows as an award for your use on VIP. Additionally, the lender or the school may request additional information during the credit, application, or certification process.

Yes. Once your PLUS Loan has been awarded, the University of South Carolina will advance you the aid to pay your bill via VIP and that advance will be paid off once your lender disburses the funds on the established disbursement dates.

If once your charges are paid and there is an overage that results from the PLUS loan, then it will be mailed from the University to the parent borrower at the address provided on the PLUS loan application. If this address has changed, please contact our office. If the lender sends a paper check, then the Office of Student Loan Accounting may mail the check for the parent's endorsement before an overage is sent.

The University of South Carolina will award the PLUS Loan to the maximum of your eligibility and request amount, whichever is lowest. If you chose to decline your loan or wish to request a lower amount, you must indicate this choice on your award letter, available on VIP, and return it to the Financial Aid Office. You may also send your request via e-mail to our office at uscfaid@mailbox.sc.edu. If you wish to increase the PLUS loan, then this request must come in writing from the parent borrower and should include the name and last four digits of both the parent and student along with the amount requested and the signature of the parent. It may be mailed or faxed to our office.

Generally within 60 days after the loan is fully disbursed. There is no grace period for these loans, which means interest begins to accumulate at the time the first disbursement is made. Your parents must begin repaying both principal and interest while you're in school.

For PLUS loans disbursed after July 1, 2008, parents may opt to defer repayment of principal and interest until 6 months after the student ceases to be enrolled at least half-time. Parents must contact their lender to request this deferment. If parents chose to defer, the University of South Carolina strongly encourage parents to make interest payments to avoid the capitalization of accrued interest.

If a parent is denied a PLUS loan due to credit, the parent borrower may want to reapply with an endorser who would be willing to cosign. If this is not an option, the student may request to be considered for additional unsubsidized funds. If a student needs funds beyond what federal aid is provided, private education loans may be another option.