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Federal Direct Parent PLUS Loans

A dependent student’s biological parent, adoptive parent, or step-parent may borrow a Federal Direct Parent PLUS Loan to finance all or any portion of the cost of attendance after all other financial aid has been deducted.  In order to qualify for a Parent PLUS Loan, a FAFSA for the student must be submitted.  A credit check is required for the Parent PLUS Loan.  Students whose parents are denied a Parent PLUS Loan are eligible to borrow an additional amount of Unsubsidized Federal Direct Stafford Loans.  For the amount of this increased eligibility, please see the information for Federal Direct Federal Stafford Loans.

The Federal Direct Parent PLUS Loan has an up-front fee of 4.204%.  The interest rate for this loan is fixed at 6.4% disbursed July 1, 2013 to June 30, 2014.

Parents may borrow up to the cost of attendance (tuition, fees, room, board, books, travel expenses, and miscellaneous expenses) minus all financial aid that the student is receiving.  Standard repayment is 10 years and begins 60 days after the loan is fully disbursed.  Repayment may be deferred (with interest accruing) until after the student graduates or ceases to be enrolled at least half-time.  Interest only payments are available during this period of deferment.

**Interest rate for the Parent Plus Loan is 7.21% for 2014-2015.

How to apply

Parents can apply and complete the credit check at www.studentloans.gov.  Sign in under “Manage My Direct Loan”.  You will need to know your FAFSA PIN number.  Once signed in, you must link to both “Start PLUS Application Process” and “Complete Master Promissory Note”.  Moravian will not originate the loan until both tasks have been completed.