Loans – Federal Direct PLUS Loans for Parents

The Federal Direct PLUS is a loan designed for parents. The maximum eligibility amount per academic year is the school’s estimated cost of attendance minus other student financial aid.

You must file the FAFSA in order to apply for a Parent PLUS loan. Please remember that that PLUS loan is credit-based and that you must have your loan approved! In order to apply, once you have filed the FAFSA please go to, sign in using your FSA ID, and click on “PLUS Loan Process” to begin the application. If the credit is approved, you will be instructed to complete the Master Promissory Note (MPN) online and Entrance Loan Counseling for the PLUS Loan (available March 29, 2015). If you are denied for a Parent PLUS loan and plan to appeal, please indicate this on your electronic PLUS Loan application. If denied* and you are not going to appeal, see instructions below.

A credit check will be completed as part of the application process. This credit check is good for 90 days only.

You are also required to complete the Federal PLUS Loan Request Form from our Forms 2015-2016 section.

Remember that this is a three part process and all parts must be completed (the electronic application, the Parent PLUS MPN/Counseling, and the Federal PLUS Loan Request form) before funds can be processed.

Who qualifies: All credit-worthy parents and stepparents of undergraduate strudents are able to borrow. Financial need is not a requirement for the PLUS loan but completing a FAFSA is mandatory for determining eligibility for this loan.

Please note, only parents and stepparents may apply for this loan for the student.

Borrowing limits: Parents are only eligible to borrow up to the cost of attendance. However, you may decline this loan or reduce your amount on this form. Apply only for the amount you absolutely need.

Interest rate: This is a fixed-rate loan of 6.84% for loans first disbursed between July 1, 2015 and June 30,2016.

Fees: There is a 4.92% origination fee deducted by the government. The net amount of your loan will be 95.7% of the amount you originally borrowed.

Disbursement: PLUS loans proceeds are sent directly to the college in two disbursements (generally half the annual amount you borrow each semester). The funds are sent by electronic funds transfer (EFT). The Business Office will credit the loan funds to the student’s account and any excess will be refunded to you or the student, whomever you designate on the PLUS Application completed online at If you have further questions regarding refunds, please contact the Accounts Receivable Office at 828-771-2062.

Repayment: Repayment of your loan begins immediately after disbursement. You may be eligbile for deferment options which you may discuss with your servicer. The maximum repayment period is 10 years. The minimum monthly payment on principal and interest is $50.

*Denied: If a parent applies for a Federal Direct PLUS Loan with the Federal Department of Education and is denied due to credit reasons, we are able to offer an additional amount of Direct Unsubsidized Loan money to the student. In addition to the denial, the student’s FAFSA results must be on file with our office in order to qualify for the additional Direct Unsubsidized Loan funds.

If the credit check results in a denial and the parent will not seek to appeal the decision or acquire a co-signer, the parent will need to notify the Financial Aid Office they will not seek an appeal or a co-signer. Once received, the Financial Aid Office will recalculate the Financial Aid Award Letter to include the additional Direct Unsubsidized Loan eligibility. The student will be emailed that a revised award letter is available on Campus Web and the student is required to respond to our email with the amount they wish to borrow before the additional loan funds can be credited toward tuition charges. You may forward the “denial” email to to expedite the process.

In the case of a PLUS denial, we are able to offer up to an additional $4000 per year in Direct Unsubsidized to Freshmen and Sophomores and up to an additional $5000 in Direct Unsubsidized to Juniors and Seniors.

Begin the application process for the Federal Direct PLUS Loan We will be able to view your application electronically once it has been submitted. Please login at the website and click on “Complete the PLUS request Process.” Be sure to complete the PLUS Master Promissory Note on the same website. Once the application is submitted, the credit check will be generated.

See the College Board “Parent Loan Repayment Calculator”

See the College Board “Parent Loan Debt Calculator”