Federal Direct PLUS Loan Program (Parent Loan)
The Federal Direct Parent Loan for Undergraduate Students (PLUS) is meant to assist parents in covering costs beyond any student financial aid. The PLUS loan is credit-based and is held solely in the parent's (and endorser's, if applicable) name for the life of the loan.
A biological, adoptive or step parent may borrow up to the annual cost of education minus any estimated financial aid received by the student. The application approval process includes a standard credit analysis for all parent borrowers. The repayment period for parent borrowers begins on the day the loan is fully disbursed (e.g., in spring). The first payment of principal and interest is due within 60 days after the final loan disbursement is made.
Approval of the Federal Direct PLUS is not guaranteed. Upon application, the Department of Education (DOE) will evaluate the borrower's credit and approve or deny the application based on credit score and history. If the PLUS Loan is denied, the parent may still be able to borrow the loan if a credit worthy co-signer is approved by the DOE; this process will be completed with the DOE.
If the PLUS loan is denied, and the parent borrower does not wish to provide a co-signer, the student may then be eligible to receive additional Unsubsidized Stafford Loan; the Stetson University Office of Financial Planning will automatically offer the additional student loan funding.
To apply for the PLUS loan, the Parent Borrower must complete the following steps:
1. Submit the Free Application for Federal Student Aid (FAFSA), with the student.
The FAFSA is used by the federal government to award federally-funded grants and scholarships.
2. Apply for Parent PLUS loan on or after April 27:
- The parent applying for the loan must visit studentaid.gov and sign in using his/her Federal Student Aid (FSA) ID (do not sign in using the student's FSA ID). If the parent borrower doesn't have a FSA ID, (s)he should apply for one.
- Once signed in, the parent borrower should click the "Request a Direct PLUS Loan" link; as a Parent, select the Parent PLUS loan type.
- Complete all sections of the application:
- Parent borrower social security number
- Two personal references
- The references must reside at two different addresses
- You will need to be able to provide phone numbers and email addresses for each reference
- Your (parent) driver's license
- The parent borrower has three options for the amount requested:
- Maximum eligibility as determined by the school
- A specific amount
- Do not know the amount; would like school to contact borrower.
- The parent borrower should pick the loan period based on which terms (s)he would like the loans to be applied to (e.g. Fall & Spring, evenly split; Fall only; Spring only; Summer only).
- The parent borrower will authorize an immediate credit check which is valid for 90 days.
Approved loans will receive an "Approved" message.
Denied loans will be offered four options:
- Pursue loan with an Endorser (cosigner)
- Pursue loan by providing documentation of extenuating circumstances (Appeal credit denial)
- Choose NOT to pursue the loan (this option must be selected if the parent wants additional unsubsidized student loan funding to be automatically offered to the student)
If option a, b, or d is selected and the parent borrower subsequently decides not to pursue the PLUS, a statement to that effect must be submitted to the Office of Student Financial Aid before additional unsubsidized loan funding can be offered to the student.
3. Complete MPN for approved loans:
- The parent borrower must complete an electronic Master Promissory Note (MPN). The MPN is not complete until the borrower reviews the document and submits. The parent borrower may disregard this step if (s)he has an active, completed MPN from a prior year.
- If the loan is approved with an Endorser, a new MPN must be completed even if the parent borrower has a prior MPN.
**Please note that if all steps in Parent PLUS Loan application process are not completed, a delay in processing or disbursing funds could result. Please contact our office if you have any questions or concerns: [email protected] or 386-822-7120.