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 Direct Plus Loan Application for Parents. This form specifies the requested amount and allows you to specify the person who should receive any excess any excess (student or parent).
- Visit the Federal Student Aid website for information about PLUS loans.
- Before the parent applies for a PLUS loan, the student must complete a financial aid form, including the FAFSA at SFSC, using SFSC’s School Code of 001522.
- The parent is required to complete entrance counseling and a PLUS Master Promissory Note (MPN) before loan funds can be disbursed. By signing the MPN, the parent authorizes the Department of Education to perform a credit check that determines whether the applicant is eligible. Complete entrance counseling and the MPN by logging into StudentLoans.gov with your Federal Student Aid ID/Password.
- If a parent choses to allow the school to use PLUS funds to pay the student’s 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 the student has began at least 6 college credit hours or 8 clock hours. The loan funds will be paid in two disbursements: half of the loan in fall term and half in spring term.