Federal Direct PLUS Loans for Parents of Dependent Undergraduates
The PLUS loan is designed for parents. You can apply for a PLUS loan only if you are the parent of a dependent student. A credit review is part of the approval process. If you are denied a PLUS loan, your son or daughter can apply for an unsubsidized loan in his or her own name.
PLUS Loan Application Requirements
You can apply for a PLUS loan if:
- Your son or daughter attends at least half-time (6 hours).
- You have good credit history. (Parents with weak credit may be eligible with a credit-worthy co-borrower or by documenting extenuating circumstances.)
- You have completed the FAFSA.
Direct PLUS Loan Application Process
Applying for a Direct PLUS Loan is a two-step process.
- Parents first complete a Federal Direct PLUS Loan Application for Parents online at studentloans.gov. The U.S. Department of Education will complete a credit check. UHCL will receive your online application and credit decision within a week.
- If the loan is approved by the U.S. DOE, the parent will receive an email from the UHCL Office of Student Financial Aid instructing him/her to complete the Direct PLUS Master Promissory Note (MPN).
Parents should not complete the MPN until they receive approval from the Office of Student Financial Aid.
PLUS Counseling is required if the U.S. Department of Education(DOE) has informed you that you have an adverse credit history and you have obtained an endorser or documented to the satisfaction of the U.S. DOE that there are extenuating circumstances related to your adverse credit history. To complete PLUS Counseling, log in at studentloans.gov and click Complete Counseling, and then select PLUS Counseling.
PLUS Loan Repayment
As a parent, you must repay the PLUS loan
- Repayment begins 60 days after the loan is fully disbursed. Note: A parent may defer repayment until 6 months after the student stops attending fulltime. If the parent wishes to defer repayment, he/she must contact Direct Loan Servicing at 1-800-433-3243.
- The repayment term is up to 10 years.
- There is no grace period. Interest begins when you first receive the loan
PLUS Loan Borrowing Limits
With a PLUS loan, you can borrow up to the cost of attendance minus any other financial aid awarded.
|Loan Type||First Disbursed between July 1, 2016 and June 30, 2017|
|Direct Subsidized and Unsubsidized Loans (for Undergraduate Students)||Fixed at 3.76%|
|Direct Unsubsidized Loans (for Graduate or Professional Students)||Fixed at 5.31%|
|Direct PLUS Loans (Parents and Graduate or Professional Students)||Fixed at 6.31%|
In addition to charging interest, PLUS loans also charge a 4.276% origination fee. The fee comes out of the first funds you receive from your loan.
Federal Direct PLUS Loan Master Promissory Note (MPN)
The MPN acts as a contract between the borrower (in this case, your parents) and the U.S. Department of Education. By signing the MPN, parents promise to repay the amount loaned and agree to other important terms of the loan. The MPN must be completed so that you can receive money from the loan.
The MPN may be signed online at https://studentloans.gov
Receiving your loan funds
Your loan money will be applied to your student's account and we will deduct any amount you owe us in tuition or fees. We mail any funds left over to your home. The parents can authorize a refund to their children on the online loan application, in which case the refund will be issued to the student through the university refund process.