Parent PLUS Loans

Federal Direct Parent PLUS loans are loans in the parents’ name.  The yearly limit on a PLUS loan is the student’s cost of attendance minus any other financial aid received (this includes loans, grants, federal work study, and scholarships).  Eligibility for these loans is not based on financial need.  If a PLUS loan is denied, the student may be eligible for additional unsubsidized loan money. The federal government does not pay the interest on the Federal Direct PLUS loans.

Requirements

• Have a dependent, undergraduate student who is enrolled at least half-time in a degree-granting program
• Have a FAFSA completed and filed by March 11 for the dependent, undergraduate student
• Meet all other Title IV Federal Financial Aid program requirements for the dependent undergraduate student (i.e. quality assurance requirements, academic progress)
• The parent must pass a credit check performed by the U.S. Department of Education
• The parent must be a citizen of the United States or a United States Permanent Resident

Application

• Parents must apply each year for the PLUS loan.
• Complete the Parent PLUS Application for Fall 2008 or Spring 2009 or the Summer Parent PLUS Application for Summer 2008. This application must be completed and submitted to our office every year.  Additional information is included in the student award.
• A Master Promissory Note (MPN) must be signed online by the parent who applied for the PLUS loan using the assigned FAFSA PIN.  Note:  The MPN only needs to be completed once if the same parent borrows every year, unless the loan was cosigned by an endorser.

Requesting Changes

• Parents may request changes to their Parent PLUS Loan for Fall 2008 or Spring 2009 by completing the Parent PLUS Change Form. Changes to Summer 2008 terms may be requested using the Summer Parent PLUS Change Form. Changes may be requested for the following reasons.
  1. Cancellation for any term or terms.
  2. Cancellation of future un-disbursed amounts after receiving the first disbursement.
  3. Reinstatement of a previously cancelled Parent PLUS Loan.
  4. Reduction of the loan amount

Denied PLUS Loan

• If the Parent has their Parent PLUS Loan Application denied, the student may be eligible for an additional Federal Direct Unsubsidized Stafford Loan amount. Students in this situation for either Fall 2008 or Spring 2009 should complete the Parent Plus Loan Denied - Student Unsubsidized Stafford Loan Request Form to request an increase in their Stafford loan. Students attending either Summer term should complete the Summer 2008 Parent Plus Loan Denied - Student Unsubsidized Stafford Loan Request Form.

Repayment

• Repayment on the loan, principal, and interest must begin 60 days after the final loan disbursement is made.
• Interest on the PLUS loans begins to accrue at the time the first disbursement is made.

For more information on Parent PLUS loan, please see Direct Loan Basics for Parents.