Parents of undergraduate students may borrow a Federal Direct Parent Loan for Undergraduate Students (PLUS) to help cover educational expenses their student may incur while attending college. The current interest rate for PLUS loans is fixed at 7.9 percent, and a 4.204 percent origination fee is deducted from the disbursed amount. Parents can borrow up to the Cost of Attendance less any other financial aid (the total of all grants, scholarships, and other loans) awarded to the student. Parents may continue to borrow each year, but must reapply and complete a new credit check annually.
How to Apply
Parents interested in borrowing a Federal Direct PLUS Loan will complete the online application process through the Department of Education at www.studentloans.gov. An instant credit check is a part of this application process. A Department of Education-issued FAFSA PIN is necessary to complete the process. Go to www.pin.ed.gov to find your current PIN, apply for a PIN, or obtain a new PIN.
Step 1: Apply for a Parent PLUS Loan for the current school year.
- Go to studentloans.gov
- Click on the green “Sign-In” button.
- Sign in using your FAFSA PIN.
- Choose “Request a Parent PLUS Loan.”
- Enter requested information and submit application.
If the credit check is denied, there are several options which can be pursued on the www.studentloans.gov website:
- Parents can choose “I want to provide documentation of extenuating circumstances.” This allows a parent to appeal the credit decision with the Department of Education.
- Parents can choose “I want to obtain an Endorser (cosigner).” The Department of Education will provide you with information for reapplying with an Endorser (cosigner).
- Parents can choose “I do not wish to pursue a PLUS loan at this time.” If selecting this option, the Office of Financial Aid will automatically process an additional unsubsidized Stafford Loan in the student’s name based on their grade level:
- Freshmen (0-24 credit hours) and Sophomores (25-54 credit hours) will receive an additional $4,000.
- Juniors (55-84 credit hours) and Seniors (85-128 credit hours) will receive an additional $5,000.
SPECIAL NOTE: If the student does not want to borrow the additional unsubsidized loan or only wishes to accept a partial amount of the additional unsubsidized loan, please contact an Enrollment Services Counselor at email@example.com.
If the credit check is approved, the parent completing the application must complete a Parent PLUS Master Promissory Note (MPN).
Step 2: Complete Federal Direct PLUS Master Promissory Note.
- Go to studentloans.gov
- Click on green “Sign-In” button.
- Sign in using your information and FAFSA PIN.
- Click on “Complete Master Promissory Note.”
- Select “Parent PLUS” and follow the instructions.
The same parent must be listed on both the initial application (credit check) and Master Promissory Note.
***The process is not complete until you see a “Congratulations” message.***
Please print confirmations for your personal records. John Carroll will be notified electronically within 24-48 hours once you have completed the process. The student will receive an email to his or her JCU email account once the Parent PLUS has been approved and processed. The revised financial aid award can be viewed through the student’s BannerWeb account. All PLUS Loan funds will be electronically transferred to the student’s account.
Parent PLUS loans go into repayment right away, with the first payment due 60 days after the loan fully disburses; however, parents may also opt to defer payments for up to four years while their student is enrolled at least half-time. Please note that interest will accrue and capitalize if you choose to defer payments. Parents can choose to defer payments as part of the application process or to secure a PLUS deferment parents should call 800.848.0979 and request this deferment after the first disbursement is released. You can find more information online at the Department of Education’s Federal Student Aid Servicing Center.
For more information about the Parent PLUS loan, please visit the Federal Student Aid website.