If you are a dependent student and your financial aid doesn’t meet your full cost of attendance, your parent may be able to take out a Direct Parent PLUS Loan (PLUS). Direct Parent PLUS Loans are available to provide a parent with additional resources to help pay the educational expenses of an undergraduate child who is enrolled at least half time. Since the parent is the borrower, the responsibility of repaying the PLUS Loan rests with the parent rather than the student. The Office of Student Financial Services will pursue other options of aid for you before calculating Direct PLUS Loan eligibility. We will award a PLUS Loan after all student loans have been awarded.
A parent will be required to pass a credit check. The credit check is good for 90 days. If we receive an application during the fall semester, we will process the application for the fall and spring semesters. If an application is received during the spring semester, the loan will be processed for the spring semester only unless the parent notifies the school in writing asking for both semesters. If you need a PLUS Loan for the summer semester, a new application will need to be completed by the parent. If for some reason the Direct PLUS Loan is denied and your parent chooses not to appeal the decision or chooses not to pursue an endorser, you may have the option to borrow additional Unsubsidized Stafford Loans in your own name. A copy of the PLUS Loan denial, which is sent to us electronically, is required for us to confirm your additional Unsubsidized Loan eligibility. Your parent will need to choose not to pursue the PLUS Loan if you want the additional Unsubsidized Loan.
Graduate PLUS Loans
Graduate students who have been awarded a Direct Graduate PLUS Loan may apply for a Graduate PLUS Loan. Graduate PLUS Loans are designed to help students meet their full cost of attendance. This loan is similar to the Parent PLUS Loan except the borrower is the student instead of the parent. The student is responsible for the repayment of the loan.
A graduate borrower will be required to pass a credit check. The credit check is good for 90 days. If we receive an application during the fall semester, we will process the application for the fall and spring semesters. If an application is received during the spring semester, the loan will be processed for the spring semester only unless the graduate student notifies the school in writing asking for both semesters. If you need a PLUS Loan for the summer semester, a new application will need to be completed by the graduate student. If for some reason the Direct PLUS Loan is denied, you have the option to appeal the decision, get an endorser, or not pursue a PLUS Loan.
The maximum Direct PLUS Loan you may receive for the school year is shown on your financial aid award letter. Please check for that amount. The parent or graduate borrower may borrow less than the maximum in order to keep the loan debt at a minimum. The maximum amount is equal to the student’s cost of attendance minus any other financial aid received. For example, if the cost of attendance is $8,000 and the student receives $5,000 in other financial aid, the PLUS Loan would be awarded at $3,000. The Office of Student Financial Services calculates cost of attendance.
Repayment on a Direct Parent PLUS Loan starts within 60 days upon disbursement. Both the Direct Parent PLUS and the Graduate PLUS can be deferred as long as the student is enrolled in at least six hours. The interest rate for a Direct PLUS Loan is fixed at 7.08 percent. There is a 4.236 percent origination fee.
To Apply for a Direct PLUS Loan
To apply for a Direct PLUS Loan, a parent or graduate borrower must, first, request a Direct PLUS Loan. If the applicant is approved then you must complete a Master Promissory Note. Parents must complete the Parent PLUS Master Promissory Note and graduate students must complete the Graduate PLUS Master Promissory Note. The Promissory Note will remain in effect for 10 years. If an endorser is used, then the note is only good for a year. PLUS Loan disbursements will be split in two equal payments. The PLUS Loan application and Master Promissory Note can be completed at studentloans.gov.
Parent borrowers will need a FSA ID to complete the process. Get yours!
For more information, contact the Student Financial Services 580.774.3022.