Federal Direct Parent PLUS Loan


Medaille College participates in the Federal Direct Loan Program. This means that parents will now get PLUS Loans directly through the U.S. Department of Education.

The Direct PLUS Loan helps parents pay the educational costs of their dependent undergraduate children. A biological or adoptive parent (and in some cases a stepparent) who does not have an adverse credit history may borrow for a dependent undergraduate student who is enrolled at least half-time. The maximum amount a parent can borrow is the cost of attendance minus any other financial aid.

To qualify for a PLUS Loan, borrowers cannot have an adverse credit history. Repayment begins 60 days after the full amount borrowed for a school year has been disbursed. However, the parent-borrower may request the repayment be deferred until 6 months after the student is no longer enrolled at least half-time. During this deferment period, interest must be paid by the parent or it will accrue and be capitalized.

Interest Rate for 2012-2013: The interest rate is fixed at 7.9%.

Fees: The fee for the Direct PLUS Loan is 4%.

If a Parent PLUS Loan is listed on the student’s award letter in an offered status, it is only a recommended amount. Parents must apply each school year and receive a credit approval to be eligible to borrow a PLUS Loan.

How to Apply for a Direct Parent PLUS Loan

1. Complete the Free Application for Federal Student Aid (FAFSA).

2. Go to the studentloans.gov website, sign in, and select Request a PLUS Loan. You (the parent) will need a PIN to sign in; this is the same PIN used to complete the FAFSA. A borrower who does not have a PIN can request one at www.pin.ed.gov. During the PLUS application process, when asked for the loan amount, we recommend you indicate the specific amount you want to borrow. If help is needed in determining the amount, please contact the Financial Aid Office. Also, a credit check will be done during the process; you will be notified immediately of the credit approval or denial. Time permitting, we suggest that you do the PLUS Request Process after the Financial Aid Award Letter has been received.

3. If you are approved, wish to borrow the PLUS Loan, and are a first-time Direct Parent PLUS Borrower, continue on to complete the PLUS Master Promissory Note (e-MPN). If you (the parent) have previously borrowed a Direct PLUS Loan for the student, you should not have to complete a new e-MPN.

4. We will receive electronic notification of the credit decision. If approved, we will process the PLUS Loan. If denied, the student may be eligible for additional Direct Unsubsidized Stafford Loan. We will send a revised award letter showing the additional Unsubsidized Stafford Loan eligibility. The maximum additional Unsubsidized Stafford is $4000 for freshmen and sophomores and $5000 for juniors and seniors.

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