Charter One | Affordable PLUS Loan

For parents of dependent undergraduate students and graduate student borrowers

Interest Rate and Fees

Effective July 1, 2006, the fixed rate, set by the federal government, is 8.50%.

Effective July 1, 2008 - June 30, 2009 the variable rates for existing loans (taken prior to July 1, 2006) is 5.01%.

0-1.00% default (guarantee) fee depending on guarantor chosen by the school.

3.00% federal origination fee

Features and Benefits

0.25% interest rate reduction for automatic payment deductions from any bank account.

Borrowers may be eligible for an extended repayment term of up to 25 years.

On a $20,000 Affordable PLUS Loan, the savings represent $258.55 or more for parent borrowers and $266.71 or more for graduate student borrowers.¹

Borrowing Limits

No annual limits; may borrow up to the cost of education less financial aid.

Eligibility²

For parents of dependent undergraduate students, or

Graduate student borrowers.

Borrowers of all income/asset levels are eligible.

Approval is based on borrower's good credit standing alone. No debt-to-income ratio is calculated or proof of employment is needed.

Disbursement

Payable to the school and borrower.

Usually disbursed in two equal amounts, one at the beginning of each semester

Repayment

PLUS loan repayment begins 60 days after the loan is fully disbursed.

Parents may defer payments while their dependent, undergraduate child is enrolled in school at least half-time.

Graduate students may defer payments while enrolled in school at least half-time.

How to Apply

Parent Borrowers:

Graduate Student Borrowers:

All accounts are subject to individual credit approval.

¹ Total savings calculation assumes 120 months loan repayment terms, continuous on time payments for full term of loan, use of ACH beginning with first payment and that the borrower will remain eligible for all benefits for full term. The calculations set forth above are examples only and may not be indicative of an individual borrower's potential savings. Actual savings may vary based on borrower payment habits, such as failing to make payments on time or failing to have funds in an account designated for ACH.

² Qualified student must be attending school in any of the following states: Connecticut, Delaware, Illinois, Indiana, Massachusetts, Maine, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island or Vermont.

Charter One reserves the right to modify or discontinue these benefits at any time. Changes to these benefits, if any, will affect only loans disbursed after the changes occur.

The lender for the above-mentioned Charter One loan program(s) is RBS Citizens, N.A., Member FDIC and Equal Opportunity Lender. RBS Citizens, N.A. may sell your student loan to a third party. RBS Citizens, N.A. will only sell your student loan if the third party agrees to honor all of RBS Citizens, N.A.'s promises to you, including all promised benefits that you will receive or might become eligible for during the loan repayment period.