Welcome
ASU students and parents!
Thank you for choosing the Arizona Higher
Education Loan Authority (AHELA) as your student loan provider.
We have partnered with ASU to make the PLUS loan process easy
and fast.
Federal PLUS Loans
The Federal Parent PLUS Loan is an affordable, low-interest loan
designed to help parents pay for additional educational expenses
not covered by financial aid. All parents of dependent students
are eligible to apply for the PLUS loan.
You may borrow up to the full cost of education minus other financial
aid received. You are not required to have financial need to apply
for the PLUS loan and no collateral is required. However, you
must be creditworthy.
Eligibility
When applying for a Federal Parent PLUS Loan you must be the biological
or adoptive parent of the dependent undergraduate student who
submitted the Free Application for Federal Student Aid (FAFSA).
In addition, you must be a U.S. citizen or permanent resident
and pass a credit check.
Fees
Many lenders charge origination fees of up to 3.00% of the total
loan amount. These fees go to the federal government to help make
up the cost of student loan programs. In addition, guarantors
may charge a fee of up to 1.00% of the total loan amount as an
insurance against student loan default.
AHELA currently pays the 1.00% default fee to save you money.
In addition, we offer the following interest rate deductions:
1.00% Interest rate reduction upon entering repayment and continuing
as long as the borrower continues to make on-time payments
0.50% Interest rate reduction for enrolling in automatic payments
through your savings or checking account
Interest
Rate
The Federal PLUS loan has a fixed interest rate of 8.5% for all
loans first disbursed on or after July 1st, 2006. AHELA’s
interest rate reductions for on-time payments and automatic payments
will lower your interest rate to 7.00%.
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Disbursements
Once
you have completed your application, your financial aid office will
determine your scheduled payments for the academic year. Ahela will
disburse your check to the school who will apply them to your tuition
bill. Remaining funds will be provided to you.
Repayment Terms
Repayment begins within 60 days after the final disbursement of
the loan. Because you are the borrower, you're responsible for repaying
the loan in full. PLUS loans do not have a grace period, although
you may apply for a forbearance if you are unable to make payments.
During a forbearance period you will not be required to make payments,
but interest will continue to accrue on your PLUS loan.
Standard Payment Plan - You
pay the same amount each month for up to 10 years towards the principal
and interest of the loan. The minimum payment amount is at least
$50 per month.
Graduated Payment Plan -
You begin repaying your loan with a lower payment and increase that
amount after two to four years. The minimum payment amount is at
least $50 per month.
Income-Sensitive Payment Plan -
You may repay your loan based on your gross monthly income. You
must show income documentation annually and additional documentation
may be required.
Extended Payment Plan - You
may take up to 25 years to repay your loan if you received your
first loan after October 7, 1998 and your combined loans totals
$30,000 or more. |