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 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 4.264%. The interest rate for this loan is fixed at 7.0% disbursed July 1, 2017 to June 30, 2018.
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.
How to apply
Parents can apply and complete the credit check at www.studentloans.gov. Sign in with your (parent) FSA ID. Once signed in, you must link to both “Apply for a PLUS Loan” and “Complete Master Promissory Note”. Moravian will not originate the loan until both tasks have been completed.
If you are approved for the PLUS Loan, Moravian will be notified within 24 hours and the loan will be added to the student's account within 7-10 days.
If you are denied for the PLUS Loan, there are a few options!
- The student is now eligible for an additional federal direct unsubsidized student loan for $4,000 or $5,000, depending on their grade level, or
- You may appeal the loan decision. This can be done by contacting studentloans.gov at 1-800-557-7394. They are available Monday-Friday from 8:00 am to 11:00 pm Eastern Standard Time, or
- You may consider using an endorser to sign off on the loan to improve the credit decision to an approved loan. The endorser will need to create an FSA ID to log on to studentloans.gov and endorse the parent loan application. The endorser will need to know the exact loan amount needed to sign off on, and therefore, I encourage you to contact the Financial Aid Office and they can assist you with the amount needed to cover the balance due for the year.
- If this option is used, the parent borrower will need to complete Loan Counseling on studentloans.gov in order for the school to process the loan.