Federal PLUS Loan

Federal Direct Parent Loans for Undergraduate Students (PLUS) are not awarded as part of a student's aid package. While parents of all income levels are eligible, a credit check is completed by the Federal Direct Loan Servicer. The application process is completed by the parent on the web at studentloans.gov. You will need your FAFSA pin to begin this process.

Borrowing limits: Parents may borrow up to the cost of attendance minus any other aid received by the student annually. This amount is shown as "Additional Financial Options" on the student award letter.

Interest Rate: The interest rate on a PLUS Loan is 6.41% for new loans in 2013-14..

Fees: All PLUS Loans are subject to fees of 4.204% that are withheld from the amount received. Fees are deducted from the loan proceeds at the time funds are disbursed.

Disbursement: After the PLUS Loan has been approved and is ready to disburse, it will be disbursed in two equal installments. Academic year loans will be disbursed half in the fall and half in the spring. Exact terms of the disbursement will be sent by the Federal Direct Loan Servicer to the parent on a disclosure statement.

Example: If a parent borrows a $4,000 PLUS Loan for the academic year, it would be disbursed in two payments:

$2,000 less 4.204% in fees ($1,916) for the first disbursement
$2,000 less 4.204% in fees ($1,916) for the second disbursement

Repayment: Repayment begins within 60 days after the loan funds for the year are fully disbursed (within 60 days after the second disbursement). Parents may also request a delayed repayment start date. Under the deferment option,

  • repayment start date is delayed until six months after the student is no longer enrolled at least half time
  • interest may be paid or capitalized upon loan entering repayment
  • Deferment is granted for one year and must be requested for additional years

The PLUS Loan is a serious financial obligation which must be repaid. Please remember the following:

  • The interest rate on PLUS Loans is a fixed rate of 7.9%.
  • The minimum monthly payment on a PLUS Loan is $50 per loan, but could be higher depending on the amount you borrow.

Additional Information

For more details about the Parent PLUS Loan, go to the U. S. Department of Education's Direct Loan web site.

Important Loan Processing Tips

  • Loans are disbursed half in each semester. You can reduce or cancel a disbursement of a loan at any time before the loan is received by Student Accounts.
  • Using the information and worksheets provided by the College, plan your annual financial needs by June and complete the loan process by August 1.
  • If you have questions, contact the College to review loan options and processes early in the summer to avoid late disbursements and finance charges.
  • Utilize the on-line application processes for federal Stafford, Perkins, and PLUS.

Forms and Websites