With this Federal loan program, parents are able to apply for a loan up to the cost of attendance minus any financial aid the student is receiving. The interest rate is fixed at 7.9% with an origination fee of 4.20%. Approval is based on a credit check. Standard repayment begins 60 days after the loan is fully disbursed and parents have up to 10 years to repay the loan. Parents also have the option to request a deferment of repayment while the student is enrolled at least half-time.
Federal Parent Loan For Undergraduate Students (PLUS), 2013-2014
The Federal Direct PLUS Loan provides a borrowing option for parents of dependent students. Families are required to complete the Free Application for Federal Student Aid (FAFSA) in order to borrow the PLUS Loan. By filing the FAFSA, the student will be evaluated for any other federal aid eligibility. Most students are eligible for a Stafford Loan at a lower interest rate of 6.8%.Federal Direct PLUS Loan Details
- Parent and dependent child must be U.S. citizens or eligible non-citizens
- Loan approval based on credit review
- 7.9 fixed interest rate
- 4.20% origination fee. Parents may borrow up to the cost of attendance minus all other aid
- Repayment begins 60 days after the loan is fully disbursed. Borrower may request deferment of repayment while the student is enrolled at least half-time.
- To request a deferment, call the Direct Loan Servicing Center at (800) 848-0979. Deferments will not be approved until the first loan disbursement has been made.
1. For a 2013-2014 PLUS Loan, complete the 2013-2014 Parent Loan Information Sheet. Send it to the Financial Aid Office.
2. Go to www.studentloans.gov and sign in using your Federal Student Aid PIN (the PIN used to sign the FAFSA).
Click on "Request PLUS Loan" link on the left side of the screen under the "PLUS Loan Option" heading; select "Parent PLUS" as your loan type and complete credit check.
3. While still logged on to www.studentloans.gov, If you are approved, complete your Master Promissory Note (MPN).* Click the "Complete MPN" link on the left side of the screen and choose "Parent PLUS Option" and you will be guided through the process.
*If you have previously borrowed a Direct Plus Loan for your current Union student, you do not need to complete a new MPN.
*Parents who require an endorser for the PLUS Loan will be required to complete a new MPN each year.
*Parents with multiple children in college must follow all above steps for each child.
If you are denied you will be provided with the following options: "Reapply using an endorser;" "Award the student with their additional Unsubsidized Stafford Loan eligibility;" "Neither."