Federal Direct Parent PLUS Loans

The Health Care and Education Affordability Reconciliation Act of 2010 mandates that all federal student loans with a disbursement date on or after July 1, 2010 be originated and disbursed under the Federal Direct Loan Program (FDLP). Financial institutions, including Commerce Bank, will no longer fund any new Federal Stafford and PLUS student loans. Commerce Bank has been in the student lending business for over 45 years and will continue to provide customer support for loans that were initially disbursed prior to June 30, 2010.

Parent PLUS Loans (Parent Loans for Undergraduate Students) are Federal Loans that can cover up to the total cost of your dependent child's undergraduate education minus the amount of other aid received.


Total Cost of Attendance $20,000
Financial Aid Received - $3,000
PLUS Loan Eligibility = $17,000

Any parent of an undergraduate student can apply regardless of financial need. Parent PLUS Loans are subject to credit approval.

  • Interest rate, currently fixed at 7.9%* APR (July 1, 2011)
  • Deferment available upon request if student is enrolled at least half-time and for an additional six months after the student ceases to be enrolled at least half-time
  • Interest begins accruing upon disbursement
  • The parent will pay a fee of 4% of the loan amount, deducted proportionately each time a loan disbursement is made
  • Flexible repayment terms (no prepayment penalties); minimum 10 years
  • Interest paid may qualify for a tax deduction**

Important Disclaimers:

  • Subject to credit approval.
  • Interest rates are effective 7/1/11. The rates and other information set forth above have been obtained from sources deemed reliable, but do not constitute representations of Commerce Bank, nor shall this be considered an offer by Commerce Bank to fund any loan at rates other than those established by the United States Department of Education.
  • Consult a tax advisor for details. IRS Publication 970, Tax Benefits for Higher Education, explains these credits and other tax benefits.
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