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 federal government determines the interest rate for each academic year, effective July 1.
- Loan-origination fees are 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.
Two steps are required for a parent or step-parent to borrow a PLUS Loan:
- A Master Promissory Note (MPN) must be completed and is valid for 10 years in most cases. The MPN only needs to be completed again if an endorser was required for you to borrow the loan or you were denied the loan due to credit issues the prior year.
- A PLUS Loan Pre-Application must be completed every year and submitted to the Johnson State College Financial Aid Office. This is the only way we know you want a PLUS Loan and how much you want to borrow each year.
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 Parent PLUS Loan Denial Form and return to Johnson State College as soon as possible so we know how you wish to proceed.
For more information and updates on Federal Direct PLUS Loans, use the U.S. Department of Education website.