Whats the interest rate on PLUS Loans?
Interest rates normally change each year of repayment, but, by law, it will never exceed 9 percent. The interest rate for PLUS Loans in repayment from July 1, 2006 to June 30, 2007, is calculated at 8.5 percent. The interest rate is adjusted each year on July 1. Your parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date that the first disbursement is made until the loan is paid in full. How will we receive funds? The loan funds will be sent to Sterling College by the lender. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be used to pay for your tuition, fees, room and board, and other school charges. If any loan money remains, your parents have the option to 1). Return extra funds back the lender 2). Receive a check paid directly to them 3). Allow the student to receive the extra funds. Any remaining loa
For loans first disbursed on or before June 30, 2006, the interest rate can change each year of repayment. By law, it will never exceed 9%. The interest rate is adjusted each year on July 1. You will be notified of interest rate changes throughout the life of the loan. For loans first disbursed on or after July 1, 2006, the interest rate is fixed at 8.5%.
