M&T Bank suspended its participation in the FFEL Program for the 2008-09 academic year and will not process or originate Federal Student Stafford Loans, Parent PLUS loans or GradPLUS loans. Details about the Federal Loan programs are provided for information purposes only.
A Federal PLUS Loan is for parents of college bound dependent students who are attending school on at least a half-time basis. A Federal Grad PLUS Loan is for graduate students who are attending school on at least a half-time basis.
Eligibility is not based on need or income, but you must not have adverse credit history.
Annual Loan Limits:
Parents/Graduate Students can borrow the difference of the respective college's Cost of Attendance for the student less other financial aid received for the academic year. No caps apply.
Cost of Attendance - Financial Aid = PLUS/Grad PLUS amount
Eligibility Requirements:
Satisfactory credit history
Must be a citizen of the US or eligible non-citizen
Student must be enrolled at least half-time in a certified program of study
Is there a credit check performed on the Parent/Graduate Student prior to obtaining a PLUS/Grad PLUS Loan?
Yes, a parent or graduate student must have satisfactory credit history.
Who is responsible for repaying the PLUS loan, the parent or the dependent student?
Since the loan is in the parent’s name, the parent is responsible for repayment of the principal and interest.
Who is responsible for repaying the Grad PLUS loan?
The loan is in the graduate student's name and the borrower is responsible for repayment of the principal and interest.
When does repayment start?
Repayment begins once the loan is fully disbursed. If, for example, you obtain a loan for an academic year (August through May), there will typically be two disbursements. The first would be in August and the second in December or January. Repayment begins 60 days after the second disbursement.
Do Parents/Graduate students have an option to postpone the repayment of a PLUS/Grad PLUS Loan?
Parents/Graduate students have the option to delay the payment of their PLUS/Grad PLUS Loan through forbearance. These forbearances are provided in 12-month increments up to 4 years.
