Type of Aid
Federal Parent PLUS Loan
If your son or daughter needs additional assistance above and beyond his or her financial aid awards, one option is a federal parent loan. As a parent, you can borrow the difference between the cost of attendance and the amount of aid your student has been awarded or will receive. The maximum amount that you can borrow is determined as follows:
|Parent (PLUS) Loan Calculation Example|
|Cost of Attendance||$23,770|
|Aid student will receive||-$12,000|
|Parent loan eligibility||$11,770|
As part of your student’s financial aid awards, we offer you a parent Direct Loan (also known by its longer name—William D. Ford Federal Direct Loan). Your lender is the federal government. Of course, if based on your budget you do not need all of the loan, do not borrow the full amount. Just let our office know the lower loan amount you wish to borrow, and we will adjust your loan award. For more parent loan information (interest rates, repayment and more), visit the Department of Education.
Parent (PLUS) Loan Facts
- Loan is only in the parent’s name.
- Approval is based on credit decision.
- Repayment begins 60 days after the loan is fully disbursed.
- Deferment of payment is possible, but you must contact your loan servicer.
- Standard repayment is 10 years (120 monthly payments).
- Current fixed interest rate is 7% for the current academic year.
- Current origination fee is 4.264%.
- Loan cannot be combined or consolidated with student loans.
- Parent loans can be consolidated into one loan.
- Parent must complete the Master Promissory Note at studentloans.gov.
- If the loan is denied, the student is eligible to request an unsubsidized loan (amount based on your student’s current classification).
- Parent Loan Counseling may be required if the loan is initially denied.
Alternative Parent PLUS Loan
- Does my school have to certify the application?
- Do I need a cosigner?
- How strict are the credit requirements?
- How long does the application process take?
- How will I receive my loan funds?
- When will my first payment on my loan be due?
- Does the loan have an annual or aggregate limit?
- How much in total loan fees will I pay?
- What is the current interest rate and how is it calculated?
- How long is the repayment period?
- What are my repayment options?
- Do I have any deferment options?
- Do I have a grace period with this loan? If yes, how long?