Federal Direct PLUS Loan (Parent Loan for Undergraduate Students)
Loan is available to parents of dependent students. Parents may be eligible to borrow up to the total cost of attendance less all financial aid received. Parents are eligible for the PLUS if they meet the minimum government credit requirements. Parents begin repayment 30 days after the final disbursement for the academic year. The PLUS is based on a ten-year repayment plan with no prepayment penalties.
Steps in Applying for a Parent Loan for Undergraduate Students (PLUS):
- The parent must complete a Parent Loan Request Form. This form will ask for the requested amount and allow you to certify who to send any excess refunds to (student or parent).
- The parent can visit the U.S. Department of Education (DOE) Web site for information on a PLUS Loan.
- Your son or daughter must have a completed financial aid form, including the FAFSA at SFCC using our School Code of 001522.
- The parent is required to complete a PLUS Master Promissory Note (MPN) before loan funds can be disbursed. By signing the MPN you authorize the DOE to perform a credit check to determine your eligibility for the PLUS loan. You can complete the MPN by signing into the StudentLoans.gov Web site with your Federal PIN.
- If you elected to allow the school to use PLUS loan proceeds to pay your son or daughter obligations, the PLUS funds will automatically be credited to the student’s account if the Direct Loan Processor has a valid MPN on file and your son or daughter has began at least 6 credit hours or 8 clock hours. The loan funds will be paid in two equal disbursements (i.e. ½ of the loan in fall and ½ in spring term).