Direct Plus Loans
PLEASE NOTE: All Federal PLUS Loan borrowers must complete a Free Application for Federal Student Aid (FAFSA). This is available at: http://www.fafsa.ed.gov
Federal Direct PLUS Loans
PARENTS PLEASE NOTE: If you plan to borrow during the 2013-14 academic year, we ask that you begin the federal loan application for the Federal Direct PLUS loan on or after August 1, 2013.
Parent credit approval expires after 90 days and the Master Promissory Note origination must be initiated by our office within 30 days of completion. The Financial Aid Office will begin processing all completed Federal Loan applications (completed Request to Borrow, Master Promissory Notes, and credit approval) after August 1, 2013.
Federal Direct PLUS loans are available to parents of undergraduate students if they are credit-worthy applicants. A parent of an undergraduate student may borrow up to the total estimated cost of attendance less financial aid resources received by the student. Because the funding for Federal Direct PLUS loans comes straight from the U.S. Department of Education, students and parents do not have to find a lender to borrow through this program.
PLUS Interest Rate and Fees
Effective for the 2013-14 academic year, the up-front interest rebate will not be available.
The interest rate for the Direct PLUS loan is fixed at 7.9%. Interest begins accruing after the first disbursement and repayment of both the principal and interest begins within 60 days after the final disbursement of the loan.
Direct PLUS loans are subject to a 4% origination fee. This reduces the amount that is disbursed to the student's account. For example, if $5000 is borrowed under the Federal Direct PLUS loan program, $200 will be deducted from the parent borrower loan amount and paid directly to the U.S. Department of Education.