Parent Loan for Undergraduate Students
Parents of dependent students can take out loans to supplement their student's aid packages. The Federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. PLUS loans are credit based and are the financial responsibility of the parents, not the student.
PLUS loans have a fixed interest rate of 6.31%. Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years.
If a parent is denied a PLUS loan, the lender will contact UMHB within 48 hours and the student's award will be recalculated to include a Federal Unsubsidized Stafford Loan up to a maximum of $4000 for first and second year students. Students who are in their third year or greater are eligible for up to a maximum of $5000.