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 2015-2016 interest rate for PLUS loans is fixed at 6.84 percent, and a 4.292 percent origination fee (4.727 after 10/1/15) 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.
Who is Eligible to Borrow a Parent PLUS Loan?
In order to borrow a PLUS loan, a parent must be:
- A US citizen, permanent resident or other eligible non-citizen.
- Be the biological or adoptive parent of the students. Step-parents can be eligible to borrow a plus loan only if their income is reported on the FAFSA.
- Not in default on a federal student loan.
How to Apply
Parents interested in borrowing a Federal Direct PLUS Loan will complete the online application process and Master Promissory Note (MPN) 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 FSA ID is necessary to complete the process. Go to https://fsaid.ed.gov to find your current ID apply for an ID, or obtain a new ID.
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 ID.
- Choose “Request a Parent PLUS Loan.”
Please note if more than one parent wishes to borrow PLUS loan funds, each parent must apply for their own ID, complete their own PLUS application and MPN.
Determining a Loan Amount
You will be given three options to indicate how much you would like to borrow when completing the PLUS application:
I want to borrow the maximum PLUS loan amount for which I am eligible.
Choosing this option, JCU will process your PLUS loan for the maximum amount possible (Cost of attendance less other financial aid) for the academic year.
I would like to specify an amount.
By selecting this option, you will enter in the dollar amount you would like to borrow. JCU will process your PLUS loan for this amount.
I do not know the amount.
By selecting this option, JCU will hold your PLUS application until you contact us, in writing, to tell us the amount you wish to borrow.
If you decide at any point you need to increase your PLUS loan, you can contact JCU, in writing, to request an increase. As long as your credit check is still valid, a second PLUS application is not needed.
You can send all requests to: firstname.lastname@example.org
Aid Year and Loan Period
2016-17 Academic year
September 2016-May 2017
2015-16 Academic year
September 2015-May 2016
PLUS loan funds automatically pay any charges on your student’s account. If there are any funds remaining, the credit balance will be issued as a refund. The parent borrower decides who will receive the refund during the application process. You have two options:
Me-This option allows the parent borrower to receive the refund.
Student- This option allows the student to receive the refund.
In addition to this selection, JCU will also send each parent borrower a Title IV authorization form once the PLUS loan funds disburse. Please make sure to complete this form as soon as possible.
If your credit check is denied, there are several options which can be pursued:
- Parents can choose “I want to appeal the decision.” 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
APPROVED PLUS APPLICATIONS:
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 FSA ID.
- Click on “Complete Master Promissory Note.”
- Select “Parent PLUS” and follow the instructions.
- If you require an endorser or appeal to be approved a PLUS loan, you will also be required to complete PLUS loan counseling
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 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. If you choose to defer repayment after the application process, please contact the loan servicer for more information.
For more information about the Parent PLUS loan, please visit the Federal Student Aid website.