As a parent, the only type of aid you can receive is the Parent Loan for Undergraduate Students (PLUS). Your student may qualify for other types of aid. For more information on the aid available for your student, refer to the sections for current student information or prospective student information of this site.
Federal Direct PLUS Loans are non-need based loans for parents of students. Under this program, parents can borrow up to the total cost of education minus their student's expected financial aid. Repayment begins 60 days after the loan is fully disbursed (usually after the second disbursement of the loan). PLUS Loan applications can be obtained from the Financial Aid Office or printed from this Web site. Students must file the Free Application for Federal Student Aid (FAFSA) before a parent applies for a PLUS Loan.
In order to process the application, the parent completing the application must also complete a Master Promissory Note. Once the application and promissory note have been completed, the Financial Aid Office will request a credit check from the U.S. Department of Education. If the credit check is approved, the loan will be applied to the student's account.
If credit is denied, questions regarding the appeal process or questions regarding the reason for the denial should be directed to the U.S. Department of Education at (800) 557-7394 between 8 a.m. – 8 p.m. (ET), Monday through Friday. Telecommunication Device for the Deaf (TDD) number is (877) 461-7010.
| Feature | Federal PLUS Loan Program | Alternative (Private) Loan Program |
|---|---|---|
| Interest Rate | Rate currently fixed at 7.9% . | Variable, usually no cap. Usually reset quarterly or monthly. |
| Cancellation | Federally insured and discharged in the event of total and permanent disability or death of student or parent | Not federally insured and does not offer discharge in the event of disability or death. |
| Qualifications | Approval is not based upon income, financial need or a debt-to-income ratio | Borrowers must meet minimum income and debt-to-income ratio requirements or have a qualified co-signer |
| Application | Very easy. Parents can apply by fax or mail. Must also complete the Master Promissory Note, which is generally good for 10 years | Students can apply by fax, telephone, or online. Supporting documentation is generally required (proof of income, co-borrower addendum, etc.) Promissory Notes must be completed each year |
| Consolidation | Can be consolidated in a Federal Consolidation Loan | Cannot be added to a Federal Consolidation Loan |
| Repayment | Generally begins 60 days after the funds have been fully disbursed, and has repayment term of up to 10 years. | Varies by lender and may begin immediately or be deferred until six months after student ceases half-time enrollment. |
| Deferments | Deferment and forbearance options are available. | Deferment is generally available while a student is enrolled at least half time. |
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