Parent Loans

Fri, 2013-03-01 15:17 -- univcomm

Parent Loan Information

Federal Direct Parent PLUS Loan

  • Available to credit worthy parents of dependent students
  • Eligibility is limited to educational costs minus financial aid
  • Repayment begins within 60 days of full disbursement.
  • The interest rate for Parent PLUS loans disbursed on or after July 1, 2013 is fixed at 6.41%

 


How to Apply for the Parent Federal Direct PLUS Loan

First-time borrowers: Complete steps 1 and 2
Repeat borrowers: Complete step 1 only.

Note: If more than one parent, including the step-parent, is borrowing then each parent or step-parent must complete the required steps for their own loan request.

  1. Request a Direct PLUS Loan
    • The parent indicates the amount he/she wants to borrow (for the current school year) based on the student’s eligibility as indicated in the financial aid award letter.
    • Direct PLUS Loan requests collect parent information that will be used by the school to process the application.
    • PLUS loan borrowers will be subject to a credit check by the U.S. Department of Education.
  2. Sign a Master Promissory Note
    • Parent borrowers must complete an MPN for each student using their own (parent) Federal Aid PIN.
    • The Direct PLUS Loan MPN constitutes the parent’s legally binding agreement to repay all Direct PLUS Loans that the student receives.
    • The Direct PLUS Loan MPN explains all of the terms and conditions of Direct PLUS Loans.

Read our Q and A on Direct Loans.