Federal Direct PLUS Loan
Overview
Apply
Master Promissory Note (MPN)
Repayment
Deferment
PLUS Loan Overview
Parents of dependent students may apply for loans from a non-need-based program, the Federal Direct PLUS Loan Program. The parent may borrow an amount up to the cost of attendance minus other financial aid. At disbursement, the funds will first be transferred into the student’s University account to pay for on-campus charges (e.g., tuition and fees, room and board, and other school charges). If any money remains, the parent of the student will receive the balance, unless the parent designates that the student should be the recipient.
- Interest
- 7.9% (fixed)
- Interest begins to accumulate on the date of the first loan disbursement
- Loan Origination Fee:
- 2.5%
- A 4% origination fee is deducted from each disbursement, and a 1.5% rebate is added back to your disbursement
- Repayment
- Repayment begins after the loan is fully disbursed, with the first payment due within 60 days after the final loan disbursement, OR
- Parent borrowers may choose to defer repayment on a PLUS Loan until 6 months after the date the student graduates or is no longer enrolled at least half time (9 or more units). Accruing interest can either be paid monthly or quarterly, or capitalized quarterly.
Apply for a PLUS Loan
You can complete the PLUS Loan Request Form online or by paper.
- Paper
- Online
- Go to the Direct Loan website
- Sign in using the parent PIN (the same PIN used to electronically sign the FAFSA)
- If you misplaced your PIN, go to www.pin.ed.gov to request a duplicate PIN
- Click on Request a PLUS Loan.
Note: If a parent is determined ineligible to borrow through the Federal Direct PLUS Loan Program, the student may be eligible for additional Unsubsidized Federal Direct Stafford Loan. First and second year students are eligible for up to an additional $4,000 per year, while third, fourth, and fifth year students are eligible for up to an additional $5,000 per year.
PLUS Master Promissory Note (MPN) Required
If you decided to borrow a Federal Direct PLUS Loan, you (the parent borrower) will be required to complete a PLUS Loan Master Promissory Note (MPN). The student does not complete any part of the PLUS application or MPN. The PLUS Loan MPN can be completed online using the parent's PIN issued by the U.S. Department of Education. If you have misplaced your PIN, go to www.pin.ed.gov to request a duplicate one.
The PLUS Loan MPN can be used to make one or more loans for one or more academic years, and in most cases, the parent borrower may then receive additional PLUS Loans for that student at that school for up to 10 years without completing a new PLUS Loan MPN. However, the parent borrower is required to confirm and accept the loan debt incurred by completing a Federal Direct PLUS Application each year.
PLUS Loan Repayment
- The PARENT is responsible for repayment of this loan.
- Estimate your monthly PLUS Loan payments using the Direct Loan Repayment Calculator.
How to obtain PLUS Loan Deferment
Repayment for a Federal Direct PLUS Loan begins at the time the PLUS Loan is fully disbursed (for full academic year loans, the loan is fully disbursed on the first day of the Spring Term), and the first payment is due within 60 days after the final disbursement.
You may defer repayment:
- while the student on whose behalf the parent borrowed the loan is enrolled at least half-time at Lawrence (9 or more units per term), and
- for an additional six months after the student ceases to be enrolled at least half-time
You may obtain a deferment request form from the Loan Servicer listed on the disclosure statement provided when you receive the loan or click here.
When requesting a deferment, a parent borrower must indicate whether he or she wishes to defer repayment only while the dependent student is enrolled on at least a half-time basis, or both while the student is enrolled and during the 6 month period after the student ceases to be enrolled on at least a half-time basis. If a parent borrower does not request a deferment, the first payment on the loan will be due within 60 days after the loan is fully disbursed.
Interest during PLUS Loan Deferment
Interest will accrue during the deferment period. The parent borrower will be sent quarterly interest statements and will have the option of paying the interest as it accrues during the deferment period. If the parent does not pay the interest as it accrues, the unpaid accrued interest will be capitalized (added to the principal balance) at the end of the deferment period.
The loan must have an initial disbursement date on or after July 1, 2008. Direct PLUS Loans disbursing prior to July 1, 2008 are not eligible for this deferment. The loan does not have to be fully disbursed in order for a parent borrower to request a deferment based on the dependent student's enrollment status. Deferment periods may vary if a parent borrower has eligible Direct PLUS Loans for more than one student. A separate deferment request must be made for each Direct PLUS Loan obtained on behalf of a different student.
