Everything About Plus American Savings Cup Loan Program

Are you a parent or a student looking for a way to finance your education easily? Are you looking for a low-interest-rate loan for educational purposes? If you answered Yes to any of these questions, then you are in the right place because the Plus American Savings Cup Loan Program got you covered.

It gives you low-interest rates, a long repayment plan, and other options to help you manage your finances while paying your loan. Follow through this entire article to the end if you love to know everything about this program. 

Getting a loan for whatever purpose is easy but problems abound with repaying such loans because some of them come with very high interest rates and a short repayment time. However, with the Plus American Savings Cup Loan Program, you are on your way to managing your finances again. If this is your first time coming across this loan program. Then continue reading to know what it is all about, how to get started, its eligibility criteria, as well as benefits. 

About Plus American Savings Cup Loan Program


Plus America Savings Cup Loan Program is a direct loan offered by the United States Department of Education. The aim is to provide the needed amount of money needed to see students through school. The application for this loan can be done by either the students or their parents.

This program is helpful as it comes with very low-interest rates and flexible repayment options that will allow you to save while repaying the loan. Need I say that the loan has no maximum amount? It is absolutely amazing! Read the next paragraph to see how to apply and its eligibility criteria.  

Eligibility Requirements For The Plus America Savings Cup Loan Program


The following are some of the eligibility criteria for the program.

For the Parent Plus Option

  • Both students and parents must be US citizens, permanent residents, or eligible non-citizens.
  • Must be the biological or adoptive parent of the child.
  • The borrower must have a solid credit history.
  • Must not have more than $2,085 debt in the last 90 days.
  • Must not have had a default, debt in bankruptcy, foreclosure, tax lien, or write-off of a federally guaranteed student loan in the last 5 years.

For Students

  • Students must attend school at least half-time
  • Male students must be registered with selective service.

How To Apply For The Plus America Savings Cup Loan Program


If you are eligible for the loan, you can apply in two ways. The first method is by visiting www.fafsa.ed.gov to fill out an application form. You also have the option of visiting the Financial Aids Office of your school (student’s school) to request and fill out the form. Check http://www.studentloans.gov/MyDirectLoan. to see participating schools. If your school is not on the list, visit the Financial Aids office to see how to get the form.

Now complete the form and sign a Direct PLUS master Promissory note which is an agreement to adhere to the terms of the loan. The office will also inform you of other requirements needed for a successful application. If your loan is approved, the funds will be used to settle all your academic needs including tuition, board, fees, etc. If any money is remaining, it will be credited to the bank account of the applicant.

What Are The Interest Rate Of Plus America Savings Cup Loan Program?


The interest rates of the program have been steady over the years with very little increase sometimes. Nonetheless, it still stands out as one of the lowest-interest-rate loans you can ever get. The interest rate within the last five years has been between 7.06% and 7.60%. 

Plus America Savings Cup Loan Program Repayment Plan


The program has a flexible repayment plan that allows you to pay the loan over 10 years. It is in two ways. They are as follows.

Parent Repayment Plan

Repayment is meant to begin as soon as the loan is disbursed. However, you can choose to defer such an agreement thereby postponing the repayment till your child is halfway through school. This repayment plan has four options. They are;

  • Standard Repayment: where the repayment amount moves higher every month till the loan is paid off in 10 years. 
  • Graduate Repayment Plan: this starts with lower payments that increase every two years. 
  • Extended Repayment Plan: This plan allows for lower repayment amounts stretched over a longer time.
  • Income Contingent Repayment (ICR): this kind of payment is tied to the parent’s income, family size, and loan amount. 

Grad Repayment

 This repayment option allows the students to start paying the loan 6 months after they graduate, leave school, or drop below half-time status. And the repayment options in the parent program above also apply here. 

Benefits Of Plus America Savings Cup Loan Program


The Plus America Savings Cup Loan Program has many benefits especially when compared to commercial loans. Below are some of its numerous benefits;

  • Large loan amount
  • Flexible Repayment Terms
  • No Late Repayment Penalties.
  • No origination fees
  • No Hidden Charges
  • Provides Financial Education Resources

Drawbacks Of Plus America Savings Cup Loan Program


  • Strict eligibility criteria.
  • Loan approval takes a long time
  • Cannot be used for personal needs.

Is Plus America Savings Cup Loan Program Legit?


The program as we have explained is powered by the United States Department of Education. It is a program of the government meant to help its citizens with finances. As such, it is backed up by every required license. Therefore, the program is legit and not a scam.

You, however, must note that there are several phishing websites out there that claim to be in charge of this loan. Hence the best way to apply is to visit the department. Do not pay processing charges to anyone for this loan. 

Can I Use Plus American Savings Cup Loan For Personal Needs?


No, the funds gotten from the Plus America Savings Cup Loan cannot be used for other purposes except the one it was approved for. The department will guide and monitor you to make sure that it is strictly used for that purpose alone.

How Much Can I Borrow From Plus America Savings Cup Loan Program?


There is no limit to the amount of money that you can borrow from the Plus America Savings Cup Loan Program. You are allowed to borrow as much as the total cost of your tuition as stated by your school. However, there is a limit to how much a family can borrow from the program. Note that this does not include other financial aid that you may have gotten in the course of your education.



The Plus America Savings Cup Loan Program is a welcome development as it has so many benefits. Its interest rates and repayment plan is impeccable and you wouldn’t want to miss it. This article has given a comprehensive guide on everything you need to know about it. I hope that with this, you will have a seamless ride through the loan process.

Leave a Comment