Understanding PLUS and Credit Union student loans
Federal PLUS loans (Direct PLUS Loans for parents and graduate students) carry higher statutory interest rates (typically 9.08%) and a 4.228% origination fee. Credit unions often offer competitive private student loans and refinancing options with lower fixed or variable rates and zero origination fees for members.
Worked example
Borrowing $25,000 via a Parent PLUS loan at 9.08% over 10 years results in a monthly payment of $317.75 and total interest of $13,130. Additionally, $1,057 is deducted in origination fees.
In contrast, a credit union loan at 7.25% with zero fees costs $293.49 per month, saving over $3,900 across the 10-year term.
Inputs for the PLUS & Credit Union loan calculator
Loan amount
The total funds required to cover educational costs.
Interest rate
The annual interest rate (e.g. 9.08% for PLUS loans).
Repayment term
Repayment duration in years (typically 10 to 25 years).
CALCULATOR QUESTIONS
Credit union PLUS loan calculator questions
Can PLUS loans be transferred to the student?
Federal Parent PLUS loans cannot be transferred to the student within the federal system; however, some private lenders and credit unions allow refinancing the debt into the student's name.