Direct Parent PLUS Loan
Parents of dependent students may apply for loans from a non-need-based program, the Ford Federal Direct Parent PLUS
Loan Program. The parent may borrow an
amount up to the cost of attendance minus other financial aid. At disbursement,
the funds will first be transferred into the student’s University
account to pay for on-campus charges, e.g., tuition and fees, room and
board, and other school charges. If any money remains, the parent of the
student will receive the balance, unless the parent designates that the
student should be the recipient.
- The interest rate is fixed at 7.9 percent, as of July 1, 2006.
- Interest begins to accumulate
on the date of the first loan disbursement.
- A 4 percent origination fee is deducted from each disbursement. A 1.5
percent rebate is currently added back to your disbursement.
- Repayment begins after the loan is fully disbursed, with the first payment
due within 60 days after the final loan disbursement.
Promissory Note Required:
If you (the student) accept a Direct Parent PLUS Loan, your
parent (the borrower) will be required to complete a PLUS Master
Promissory Note (MPN) and an Active Confirmation form. You, the
student, do not complete any part of either document. Your parent can
sign the required MPN electronically with their U. S. Department of Education -issued PIN. If they don't already have their PIN, they can request one on
the official PIN site. The Active Confirmation form is available at Forms
Online to download and print off. Once completed, the Active
Confirmation form is returned to the Office of Student Finance.
The PLUS MPN can be used to make one or more loans for one or more
academic years, and in most cases, the parent borrower may then
receive additional PLUS Direct loans for that student at that school for
up to 10 years without completing a new PLUS Direct MPN. However,
the parent borrower is required to confirm and accept the loan debt
incurred by completing an Active Confirmation form for each PLUS Direct Loan.
