The Federal Direct Parent PLUS Loan program is available to parents of dependent undergraduate students. See Loan Terms and Repayment below for eligibility.
Available to parents (including adoptive parents or stepparents) of dependent undergraduate students, if they are credit-worthy applicants. To be eligible to apply, the parent must be a U.S. citizen or permanent resident and the student must have filed a current FAFSA.
May borrow up to the cost of attendance minus any financial aid the student is receiving.
Loan Fees and Interest Rates
There is a 4.272% origination fee that is taken out of the loan disbursement(s) prior to the funds being sent to the college. The current interest rate is fixed at 6.31%. For the most up to date interest rates and origination fees, visit Federal Student Aid.
Repayment begins 60 days after the full disbursement of the loan.
Parents may request a deferment of payment until six months after the student leaves school. Request the deferment through the assigned loan servicer. After the first loan disbursement, go to www.nslds.ed.gov to find your assigned loan servicer.
When to Apply
Parent borrowers must reapply each year and for adjustments after credit expires. Credit decisions are valid for 180 days.
Our office will begin processing applications on March 31st, 2016. Complete applications and MPNs no later than August 1st to avoid delays in funding to cover the Fall term bill in August.
INCOMPLETE APPLICATIONS CANNOT BE PROCESSED
NOTE: To request only the credit check, mark the box at the top of the application. Our office can provide credit decisions no earlier than March 31, 2016.
Parent PLUS Loans for Spring Term
SPRING TERM - OPTIONAL CONDENSED 4 WEEK COURSE OFFERED IN MAY
Spring Term PLUS loans require a separate loan to be originated. Applications for Spring Term loans should be submitted no later than February 1st to avoid delays.
Spring Term Costs
Course Fee: Dependent Upon Course Chosen
How to Apply for a Parent PLUS Loan at Alma College
(To be Completed by the PARENT BORROWER)
Step 1: Complete the Alma College Parent PLUS Loan Application
Choose Your Loan Period
- If you select Academic Year, the amount will be split in half between Fall and Winter semesters.
Determine Your Loan Amount
Use the PLUS Loan Calculator below.
INCOMPLETE APPLICATIONS CANNOT BE PROCESSED.
Step 2: Complete a PLUS Master Promissory Note (MPN) for Parents online at www.studentloans.gov.
- If you borrowed for the same student in a prior year, a new MPN is not required.
Certain circumstances may require a new MPN and/or PLUS Counseling. Our office will contact you if this is needed.
How to Use the PLUS Loan Calculator
If you already know the amount you need, go directly to the Amount Needed field to make sure you borrow enough to cover the fees.
1. Estimate Your Costs
Enter the costs you expect to have into the calculator. See Estimated Costs Sheet here.
2. Record Total Estimated Funds
Federal Work Study MUST BE SUBTRACTED from Total Estimated Funds.
3. Review Amount Needed
Adjust amount if you plan to contribute out-of-pocket or if the student is receiving a scholarship from an outside donor.
PLUS Loan Calculator
The purpose of this calculator is to assist borrowers in
estimating an amount to borrow in a PLUS Loan.
Alma College is not responsible for the amount calculated.
Books, Overload credits, Course fees, etc.
Estimated Financial Aid
From Web Advisor page.
Enter a different amount if desired.
Enter this Loan Amount on your PLUS Loan Application.
It is the sole responsibility of the parent borrower to ensure they are borrowing the amount needed. Review the student’s billing statement each semester to ensure you have borrowed the amount you need. Contact our office if you would like to change your loan amount.
Please Note: Loan amount(s) may be reduced depending on eligibility.
If additional financial assistance or other educational resources are received by the student after the Direct PLUS loan is certified, one or both of the loan disbursements may be reduced or cancelled to prevent over-awards. An example of other resources might be a student who received a $500 scholarship from the Red Cross.
- Federal Direct Parent PLUS Loans WILL NOTdisburse unless you have:
- completed the application,
- completed the Master Promissory Note (MPN) AND,
- the loan is APPROVED by the US Department of Education.
- Funds will be applied toward the student account once all requirements are met and the student is enrolled in sufficient credit hours.
- Loans will disburse no earlier than the first week of classes.
- The loan will be credited to the student’s account balance and any excess funds can be refunded upon the student’s request to the Financial Services Office.
You have the right to cancel all or part of your PLUS loan disbursement each semester. Submit a request to the Financial Aid Office within 14 days from the date you receive official notification from our office that the loan has been disbursed.
If PLUS Loan is Denied
Parents with adverse credit history, those who have accounts more than sixty days delinquent, or those who have filed bankruptcy in the past may be denied a PLUS Loan. If you are notified of a denial, you can still assist your student with the college investment in the following ways:
Appeal – Appeal the credit decision by contacting the Department of Education at (800) 557-7394. Contact the Financial Aid Office if the credit decision has been appealed. The parent borrower must also complete PLUS Counseling on www.studentloans.gov if the credit decision is appealed.
Endorser – Continue the application with an endorser (co-signer). The endorser must complete the endorser addendum on www.studentloans.gov. The parent must complete PLUS Counseling and a Master Promissory Note on www.studentloans.gov.
- The endorser will need the parent borrower’s last name and either the endorser code OR the Loan/Award ID Number and a Federal Student Aid (FSA) ID.
- The endorser code may be found in the confirmation email you received from Direct Lending, or found by logging into the studentloans.gov website and selecting “Direct PLUS Loan Requests” located on the left navigation bar.
- Contact the Financial Aid Office if the application has been approved with an endorser.
- Reapply – Reapply for the Parent PLUS loan with a different parent by completing a new application. The new applicant would need to complete his/her own MPN.
Additional Federal Unsubsidized Loan– A Parent PLUS loan denial makes the student eligible for an additional Federal Unsubsidized loan of $4,000 per year for Freshman/Sophomores or $5,000 per year for Junior/Seniors. The student would need to accept the loan through the student portal by selecting the Financial Aid tab and then MANAGE MY LOAN.
NOTE: If at a later time during the academic year, either parent becomes eligible or is approved with a co-signer for a Parent PLUS Loan, the additional Unsubsidized Loan will be canceled as the student will no longer be eligible.
- NOTE: If at a later time during the academic year, either parent becomes eligible or is approved with a co-signer for a Parent PLUS Loan, the additional Unsubsidized Loan will be canceled as the student will no longer be eligible.
- Alternative Loan – Help your student apply for alternative loans. Alternative educational loans are available to help students meet education costs not covered by other aid.