The Federal Direct Parent PLUS Loan program is available to parents of dependent undergraduate students.
|Understanding the PLUS Loan|
|Interest Rates and Fees|
*subsidized and unsubsidized loans first disbursed on or after July 1, 2022 and before July 1, 2023.
4.228% Origination Fee*
*Loan fee effective on all loans disbursed on or after October 1, 2020 and before October 1, 2023.
Please visit Federal Student Aid for the most current rates
The following must be complete before a loan can disburse. (note: you may have completed these steps in previous years. Please login to your portal and select “My Self Service” Financial aid and review your checklist to determine if you need to do anything further.)
First Day of Classes: All required steps must be complete.
Second Week of the Term: Loans that have all the above requirements met will post to the student account.
Once the loan has been credited to the student’s account balance if it creates a credit balance any excess funds can be refunded upon the student’s request to the Financial Services Office .
Repayment begins 60 days after the full disbursement of the loan. The parent is solely responsible for repaying the loan. This loan can never be transferred into the student’s name. 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 studentaid.gov to find your assigned loan servicer.
*If a parent borrower does not choose to defer payment, repayment begins 60 days after full disbursement of the loan. Therefore, the first payment of a fall/winter loan will usually be due in March.
The Parent PLUS loan has a fee that is a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.Need help calculating the PLUS Loan Fee? Use the calculator below!
(enter an estimated balance here or the balance shown on the statements.)
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.
|PLUS Loan Denied - Next Steps|
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:
Still Have Questions?
I no longer wish to borrow my loan how do I cancel it?
Please send an e-mail to FinAid@alma.edu and include the information below. This must be done within 14 days of the disbursement posting to your account. We will send an e-mail notifying you of your 14-day window. If it is past 14 days please inquire with our office to see what options may be available.
IMPORTANT – If you cancel your loan your student may be left with an outstanding balance. Arrangements will need to be made immediately to pay this balance.
Any pending loans (loans with incomplete steps) will be canceled by the financial aid office by the end of September.
Review the resources below if you still have questions about the PLUS Loan. Below are helpful forms and Financial Aid TV videos to help you with anything and everything about the PLUS Loan! If there is something you don’t see, then call or email our office!