Plus Loan | The Office of Student Financial Services

Plus Loan | The Office of Student Financial Services

William D. Ford Federal Direct Parent Loan for Undergraduate Students (PLUS)

PLUS Loan Overview 

PLUS is a federal loan program for folks of dependent undergraduate students to assist cowl out-of-pocket faculty bills. PLUS loans are within the father or mother’s title and might by no means be transferred to the student.

Loan Eligibility and Amount 

Federal Direct PLUS Loans enable dad and mom to borrow on behalf of their dependent undergraduate youngsters who’re enrolled not less than half time at a post-secondary college. When you apply for a Direct PLUS Loan, the Department of Education will test your credit historical past. In addition, dad and mom should be a U.S. citizen or eligible non-citizen, and should not be in default on any federal loans. Students should meet Satisfactory Academic Progress. Parents can borrow as much as the quantity of the full price of attendance, minus some other help the student is receiving.

Interest Rate, Origination Fee, and Repayment 

The rate of interest on the loan is 6.31%, and curiosity begins to accrue the second the loan is disbursed. In addition, there’s a 4.272% origination payment. For PLUS loans made to folks which can be first disbursed on or after July 1, 2019, the borrower has the choice of starting reimbursement on the PLUS loan both 60 days after the loan is totally disbursed or wait till six months after the dependent student (on whose behalf the father or mother borrowed) ceases to be enrolled not less than half-time.

Loan Application Requirements 

To apply for a Direct PLUS loan, a father or mother should full two steps with the Department of Education. Both steps can be found on the identical webpage and might be carried out on the identical time. The two steps are:

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1. “Complete the PLUS Loan Request Process” at
2. “Sign the Master Promissory Note” at
You will want the father or mother’s FSA ID quantity to finish the applying.

Both steps should be accomplished earlier than you may obtain funds.

Generally, the PLUS Electronic MPN must be accomplished solely as soon as, offered the father or mother borrower stays the identical from 12 months to 12 months.

The federal authorities will make a credit choice on the loan. This choice course of can take as much as two weeks. If you might be permitted for a PLUS loan and the PLUS Loan Request and Master Promissory Note are accomplished, we’ll disburse the funds to the student’s account on the scheduled disbursement date.

What occurs if I’m denied? 

If you don’t qualify for a PLUS loan, you’ll be notified in writing of the denial choice and your choices. If you imagine that the credit choice is inaccurate, you could attraction the credit choice. You even have the choice to get a cosigner (“Endorser”) for the PLUS loan. A PLUS loan denial additionally permits the student to request an extra Unsubsidized Direct (Stafford) Loan of as much as $4,000 per 12 months for freshmen and sophomores, and as much as $5,000 per 12 months for juniors and seniors.

PLUS Loan Renewal 

PLUS loans are usually not robotically renewed. A father or mother should full the PLUS Loan Request course of yearly.

Disbursement of PLUS Loans 

Your Federal PLUS Loan funds will probably be disbursed on to your faculty student account. Funds are first used to pay tuition and different college bills, however any leftover cash can be utilized for different instructional bills. In normal, you’ll obtain an equal quantity for every time period for which your loan was permitted. Your father or mother borrower will obtain a disclosure assertion from the Direct Loan Servicing Center that lists the dates and quantities for every Direct PLUS Loan that you’ll obtain. If you might be enrolled lower than half time in any time period, you can not obtain federal loan funds for that time period.

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Graduate PLUS Loans 

For details about Graduate PLUS loans, contact the Carthage Office of Student Financial Services. Graduate students shouldn’t full the Parent PLUS Loan.

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