Parent Loan for Undergraduate Students (PLUS)

Parents with no recent credit difficulties may borrow annually up to the published cost of education -- less any financial aid that is available to their student. Repayment begins 60 days after disbursement; the parent has up to 10 years to repay the full amount. Although interest is capped at 9 percent, it is set annually based on T-bill rates. The rate for 2006-2007 is fixed at 8.5%. Rates are set by the federal government in June of each year.