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 www.studentloans.gov, sign in using your FAFSA PIN #, 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. If you are denied for a Parent PLUS loan and plan to appeal, please indicate this on your electronic PLUS Loan application.
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 2014-2015 section.
Remember that this is a three part process and all parts must be completed (the electronic application, the Parent PLUS MPN, and the Federal PLUS Loan Request form).
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 elligible 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 7.21% for loans first disbursed between July 1, 2014 and June 30,2015.
Fees: There is a 4.288% 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 loan will be credited 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 www.studentloans.gov. 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.