Parent PLUS Loan
If you're an undergraduate student enrolled at least half-time and dependent on your parents, your parents may qualify for a Parent PLUS Loan. The PLUS loan is available without regard to financial need; however, the parents must be U.S. Citizens. The PLUS loan is a non-need based program based on credit-worthiness. A current FAFSA must be on file in order to request a Parent PLUS Loan. The PLUS Request Application Process must be completed for each academic year for which a parent wishes to acquire a PLUS Loan. The parents are responsible for repaying the loan and unless otherwise requested, repayment begins 60 days after the loan is fully disbursed. The interest rate is fixed at 6.84 percent. If the loan is first disbursed after July 1, 2016, the interest rate is 6.31 percent. In addition to interest, there is an origination fee (or loan fee) of 4.276 percent that is taken out of the principal amount of each PLUS loan received before the funds are disbursed to the school. To apply for a PLUS loan, complete the following:
Complete PLUS Request Process (you will not be able to complete the application process until after March 15, 2016 for the 2016-2017 Academic Year and March 15, 2017 for the 2017-2018 academic year)
Parents may borrow a Parent Loan for Undergraduate Students (PLUS) up to the full Cost of Attendance (or Budget) minus any financial assistance the student is receiving. If the student has an excess of funds (more aid than the total direct cost), the balance will be given to the student as a refund. The student can use this refund as a means to pay for books, transportation or other personal spending.
Please Note: If a parent is denied a Parent PLUS Loan due to credit reasons, the student may be eligible to receive additional unsubsidized Direct Loan funds. (The PLUS Request Application Process must be completed for each academic year)
Graduate PLUS Loans
Graduate students may also apply for Direct PLUS loans. The process is the same as that listed above for parents, only the graduate student would apply in his/her name. To be eligible, the graduate student must be enrolled at least half time in an eligible program leading to a degree, not have an adverse credit history, and meet all the general eligibility requirements for federal student aid.