To apply for a Parent PLUS loan for FALL/SPRING 2011-2012, the borrower must select 2011-2012 from the drop-down box on the online application.
Once we receive the application, we will mark it as "R" received on the Hokie SPA. These loans are processed in the order received, the loan will be visible at the Hokie SPA for the amount the student is eligible for.
If the parent borrower chose to have excess funds refunded to the parent, a check will be mailed to the parent borrowers address used on the application.
Parents of undergraduate dependent students may apply for a Federal Direct Parent PLUS loan online using the instructions below. The online application process includes a credit check by Direct Loans. The yearly limit is the student’s cost of attendance minus any other financial aid received (this includes loans, grants, federal work study, and scholarships). The parent may apply for funds to pay tuition, fees, and student's living expenses.
Once the loan is approved, disbursed to VT, and any outstanding balance due paid to the university, the excess funds are refunded to the student or the parent (as indicated on application). If the refund to parent option is chosen, a check is mailed to the parent borrower address. If the refund to student option is chosen, excess funds are deposited into the bank account of choice using direct deposit (student enrolls for direct deposit at the Hokie SPA) or a check mailed to the student's permanent address if the student is not enrolled in direct deposit.
The loan rate is fixed, currently set at 7.9%. Repayment of the loan generally begins sixty days after the final loan disbursement for each academic year unless the parent requests a deferment during the application process. Interest accrues on the Parent PLUS loan while the student is in school and during repayment. Eligibility for the loan is not based on financial need. If a PLUS loan is denied due to credit reasons, the student may be eligible for additional unsubsidized loan money. The online application process will prompt borrowers for this option and VT will be notified. More information on the Federal Direct Parent PLUS loan can be found at the Federal Student Aid website: http://www.studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp
Note: In order to fill out the online Parent PLUS loan application and sign the master promissory note, the parent must have a U.S. Department of Education PIN. If the parent does not have a PIN number, one can be obtained at www.PIN.ed.gov before filling out the online application.
The Department of Education's PLUS Application site combines the Federal Direct Parent PLUS Loan application and Master Promissory Note under one process. Please apply at least 30 days before the bill due date to ensure timely processing of the loan.
Click on the link below to launch the Department of Education's Federal Direct Parent PLUS application. The parent is the borrower and must provide their information during the log in process.
Step 1: Parent Logs in with their Federal PIN
It is very important that the PARENT, not the student, log in using their parent PIN.
Click the 'Sign In' button and enter the (parent) PIN number and the additional information requested. If the parent does not have a Federal PIN number (used to sign the Free Application for Federal Student Aid) a link is provided to apply for a PIN
Step 2: Click 'Start PLUS Application Process
Next click the “Request a PLUS Loan” link and read the information provided. Then click the “Parent PLUS” link to begin the application.
Step 3: Enter Parent and Student Information
The first page of the Federal Direct PLUS application requires entry of demographic information for the parent applicant. Page 2 of the Federal Direct PLUS application requires student and school information.
Step 4: Review Data Entered
Next verify the information that has been entered. Correct any information that was entered incorrectly.
Step 5: Credit Check
Federal Direct PLUS awards are based upon credit. To qualify for the loan, the parent must first pass a credit check. Next the parent borrower must agree to the terms provided and then click submit. The credit check will end in approval or denial.
Credit check ends in Denial:
If denied, options will be given that include appealing the credit decision, obtaining an endorser, or not pursuing the loan. Select the appropriate answer. If the loan is denied and the parent will not use an endorser or appeal the decision, the student can request the additional unsubsidized loan by filling out the Parent PLUS Loan Denied-Student Unsubsidized Stafford Student Loan Request Form located under forms on our website http://www.finaid.vt.edu/forms/index.html.
Important- if the parent has obtained an endorser and the endorsement is complete OR the parent has an approved appeal, please e-mail finaid@vt.edu with the student ID number and a note to let us know the endorser or approval has taken place.
Credit check ends in Approval:
If approved, continue with the steps below to complete a Federal Direct PLUS Master Promissory Note (MPN). The MPN must be completed in order for the loan to be processed.
Step 6: Begin the Master Promissory Note process
Read the information provided upon completion of a successful credit check. Click your student's name to begin the promissory note.
Step 7: Complete the MPN
The Federal Direct PLUS Master Promissory Note will require the completion of additional parent information and personal references. Enter the required information then read and agree to the terms and conditions of the loan.
Step 8: Review and Sign the MPN
Review the information provided, complete the signature boxes and click 'Sign'.
Step 9: Print the MPN
Loan Certification and Disbursement --The Department of Education will notify Virginia Tech of approved PLUS applications. Our office will mark the application as "R" received on the Hokie SPA. If the student is enrolled at least half-time (6 hours) and is eligible for the PLUS loan, VT will certify the loan for the lesser of the amount requested or remaining eligibility (Cost of Attendance minus other aid received). The amount processed can be viewed at the student’s Hokie SPA.
The Federal Direct Parent PLUS loan online application has the option built in to request additional unsubsidized loan if the Parent PLUS loan is denied. VT will be notified and process this request.
The unsubsidized loan due to parent loan denial can also be requested by using the the Parent PLUS Loan Denied-Student Unsubsidized Stafford Student Loan Request Form located under forms on our website http://www.finaid.vt.edu/forms/index.html.
Click here for a PDF Guide to Parent PLUS loans at VT