Undergraduate Federal Direct Parent PLUS Loans
Federal PLUS Loans enable parents or step-parents who are credit-worthy to borrow to help pay for a dependent student’s educational expenses. The U.S. government is the lender for the Direct Loan program.
Parent PLUS Loan
- A FAFSA must be completed by you and the dependent student in order for a PLUS loan to be borrowed.
- The interest rate is fixed at 7.9%.
- A loan-origination fee of 4.0% is deducted from the total amount borrowed.
- Repayment begins approximately 45 days after the loan is fully disbursed.
- Parents may request a deferment while the student is enrolled.
- Loan funds are credited directly to the student’s account each semester.
- The parent is the borrower for a PLUS Loan, not the student.
To complete the process to borrow a Parent PLUS loan go to: https://studentloans.gov. This website pertains to parent PLUS Loan borrowers as well as student borrowers. To complete the borrowing process, parents must use the federal PIN that was used to sign the FASFA. Can't remember your PIN or need to apply for a federal PIN? Go to http://www.pin.ed.gov.
The following two (2) steps are required before the loan can be credited to your student’s account:
1. COMPLETE MASTER PROMISSORY NOTE*: Select this option after signing in with your FAFSA PIN (do not choose “Complete PLUS Request Process”.) The next selection is Parent PLUS from the menu in order to complete the Master Promissory Note (MPN). The MPN is valid for 10 years. Entrance Counseling is not required for parent PLUS borrowers.
* Parents that have already borrowed a Direct Parent PLUS Loan do not need to complete the MPN again unless an endorser was required for you to borrow or you were denied due to credit issues the prior year. Completing the PLUS Loan Pre-Application is required every year.
2. PLUS LOAN PRE-APPLICATION: This form is required every year and must be submitted to the Johnson State College Financial Aid Office. If you fail to provide the 2013-14 Parent PLUS Loan Pre-Application to us, we have no way of knowing you want to borrow a PLUS loan or the amount.
To assist you in determining how much to borrow, please refer to our 2013-14 Educational Cost Guide and Financial Planning Worksheet
If a parent borrower is denied the PLUS Loan based on the parent’s credit, the parent may obtain an endorser for the loan or may authorize the student to borrow an additional unsubsidized loan. Students with less than 60 credits can be allowed to borrow up to $4,000 and students with 60 or more credits can be allowed up to $5,000. Please print and complete the 2013-14 Parent PLUS Loan Denial Form and return to us as soon as possible so we know how you wish to proceed.
Use www.studentloans.gov as your source for information from the U.S. Department of Education about how to manage repayment of your PLUS loans.