PLUS Loans

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.

Loan Limits

May borrow up to the cost of attendance minus any financial aid the student is receiving.

Loan Fees and Interest Rates

There is a 4.264% 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 7.6%. For the most up to date interest rates and origination fees, visit Federal Student Aid.

Repayment

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.

Deferment

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. 

2018-2019 School Year: We will begin processing applications on June 1st, 2018. 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

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 1^st to avoid delays. Learn more about Spring Term here! 

Spring Term Costs
Course Fee: Dependent Upon Course Chosen
Tuition: $1,533
Board: $600

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.

• Make sure to read your MPN for full details on the loan. We cannot list all terms that apply on this site.

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.

2018-19 — See Estimated Costs Sheet

2. Record Total Estimated Funds

Enter the estimated amount of aid being accepted into the calculator. This can be found on your My Self-Service Account under Financial Aid/My Awards. 

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. 

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.

Disbursement

• Federal Direct Parent PLUS Loans WILL NOT disburse 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.

Loan Cancellation

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.
    
    
• 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.

• Cashnet Tuition Payment Plan - Cost $35 per academic year
  Cashnet payment plan will split the student’s account balance into 5 monthly affordable payments. Payments are made directly to Cashnet with this option. Click here to enroll.
   
• Alma College Payment Plan - Cost $20 per semester
  This payment plan allows families to split their balance into two equal payments per semester. For information about payment plans, please contact the Alma College Financial Assistance Office at (989) 463-7453.

Still Have Questions?

See our Parent PLUS Frequently Asked Questions page or contact us for answers.