Federal PLUS Loan
The Federal Direct Parent Loan for Undergraduate Student (PLUS) is a loan for the natural parent or adoptive parent of a dependent student. A stepparent may be eligible to borrow if income and assets were reported on the FAFSA. The first step in applying is to complete the FAFSA for the appropriate year. A parent can borrow the total estimated cost of attendance less the student's total financial aid (see student's award letter). If more than one parent wants to borrow a parent loan for the same student, each parent must complete a separate PLUS Loan Application and EMPN.
The interest rate for the 2012-2013 year is 7.9% fixed for the life of the loan.
**2013-14 interest rates have not yet been announced by the Department of Education**
The U.S. Department of Education charges a 4.204% loan origination fee for processing your loan.
2013 – 2014 PLUS Loan Process
The application is available online at www.studentloans.gov. This online application is for any incoming freshmen and returning upperclass students for the 2013-2014 academic year. PLUS Loan applications for 2013-14 will be available at www.studentloans.gov beginning May 18th.
In order to borrow a PLUS Loan, the parent has to pass a credit check.
If you do not pass the credit check, there are three options available to you.
- You can work with Applicant Services at 1-800-557-7394 if you believe there was an error made on your credit check.
- You can obtain a creditworthy endorser. The endorser would need to pass the credit check, agree to endorse the promissory note, and agree to repay the loan if you would fail to do so.
- You can decline the PLUS Loan and allow the student to borrow an unsubsidized loan in the student's own name. Freshmen and sophomores (0 to 59 hours) can borrow up to $4,000 and juniors and seniors (60 or more hours) can borrow up to $5,000 for the school year.
Disbursements are applied to your student's university bill, i.e., student account. PLUS loans are typically disbursed over all semesters of enrollment for the academic year. Any change to the standard disbursement process requires a written request to our office. Any refunds resulting from the PLUS Loan go to the parent unless specified to go to the student on the application.
Initial PLUS Loan repayment begins 60 days after the final disbursement of the loan (repayment can be deferred until six months after the student graduates or is no longer enrolled by marking "Yes" on the "Request for Deferment while student is in school" section. You can choose the Standard, Extended, or Graduated Repayment Plan. (Repayment Chart) Interest begins to accumulate at the time the first disbursement is made. If you are experiencing difficulty making the scheduled payment, you should contact the loan servicer.
A student must meet the following requirements before any PLUS Loan proceeds can be disbursed.
- Enrolled at least half time (six credit hours)
- Enrolled in a degree-seeking program
- Making Satisfactory Academic Progress (SAP)