PLUS Loan Program Consumer Information & Application Instructions
Available for credit-worthy graduate or professional students and parents of dependent undergraduate students.
Program Description
A Federal Direct PLUS loan is a non-need based federal loan program. Please refer to the Direct Loan Basics for Parents brochure provided by the Department of Education for a more detailed explanation, available at https://studentaid.gov/understand-aid/types/loans/plus/
You must file a FAFSA in order to receive the PLUS Loan. Then you must apply for the PLUS Loan at https://studentaid.gov/plus-app each year
When considering a PLUS loan, remember that the student must be enrolled at least part time (6 credit hours for undergraduate students OR 3 credit hours for graduate students).
Borrower
To borrow a PLUS loan for a student, the parent must be the student’s biological or adoptive mother or father. A stepparent is also eligible to borrow a PLUS loan. A legal guardian is not considered a parent for federal student aid purposes. Grandparents are not eligible to borrow a PLUS Loan for their grandchildren.
Professional and Graduate students may apply for a Grad PLUS loan
Eligibility
Parent and Student are:
· U.S. Citizens or eligible Non- U.S. Citizens
· Not in default on prior educational loans
Parent:
· Borrows on behalf of the dependent student and is responsible for loan repayment
· Meets federally defined creditworthiness standards
Student:
· Enrolled in at least 6 credit hours for undergraduate students OR 3 credit hours for graduate students
· Undergraduate students must meet Satisfactory Academic Progress (SAP) requirements
Eligible Annual Loan Limits
You may not borrow more than the cost of the student’s education minus any other financial aid received (such as grants, scholarships, or loans – including Direct Subsidized/Unsubsidized loans). High Point University will determine the actual amount you may borrow.
Fees
4.228% origination fee as of 10/1/2022 (this fee is deducted up front and thus lowers the actual net amount of each disbursement that appears on your tuition bill)
Interest Rate
Current fixed interest rate is 7.54% as of 7/1/2022. Rates may change depending on legislation so please visit: https://studentaid.gov/understand-aid/types/loans/interest-rates
How to apply:
PLEASE NOTE that you must re-apply for a PLUS loan for each academic year. Also the PLUS loan application includes a credit check that is only good for 180 days. So please wait to apply for a PLUS loan until 180 days before the academic term starts. Since the applicant’s credit is run for each PLUS application, we would advise applying once for the full academic year. The loan funds will be disbursed by semester as they are awarded.
- Student completes FAFSA for the applicable school year
- Parent/Graduate student go to https://studentaid.gov/plus-app and click Log In button in the top right hand corner
- Parents log in using your FSA ID (username & password) not your child’s or Graduate students will log in with your own FSA ID
- Once signed in – Click on “Loans and Grants” Menu in top right and choose “PLUS Loans: Grad PLUS and Parent PLUS”, then click blue button to the right of the borrower type to proceed
- Choose Award Year = 2022-2023 year for Fall 2022, Spring 2023, and/or Summer 2023 terms
- Amount
- If you choose “unknown”, then we will not be able to process your PLUS loan. You will have to sign back in and choose a specific amount or the maximum before the loan can be added to the student’s account.
- If you choose “maximum”, then you will be awarded up to your current cost of attendance for the date range you provide. You can always email your counselor to adjust the PLUS loan.
- If you choose a specific amount, please take into account the 4.228% loan origination fee that the federal government will take off the top.
- Once you have completed the application – Click on “Loans and Grants” Menu in top right and choose “Master Promissory Note (MPN)”, then click blue button to the right of the borrower type to sign the MPN for your PLUS Loan
- Click on “Loans and Grants” Menu in top right and choose “Annual Student Loan Acknowledgement”
- If your PLUS Loan is endorsed by a co-signer, then you will be required to complete PLUS Credit Counseling, this is under the “Loans and Grants” Menu at the top of the page
- Once you have completed the application, HPU will be notified electronically in 48 hours. Then a revised financial aid award letter will be emailed out to the student once the loan has been added to the account.
- You must sign the MPN and complete the Annual Student Loan Acknowledgement for your PLUS loan to go through.
- Please Note: An origination fee will be charged on each loan that will be deducted from the loan before disbursement.
Options if Denied Based on Credit
The Direct Loan Origination Center will notify the borrower if the Federal Direct PLUS loan credit check is denied. The HPU Student Financial Planning Office does not provide notice if your credit check was denied. If the credit check is denied, there are three options:
- Request a review of the credit check due to inaccurate information on the credit report by contacting the Direct Loan Origination Center at 1-800-557-7394
- You can obtain an endorser’s signature. Your endorser must also pass a credit check. Additional information is available by contacting the Direct Loan Origination Center
at 1-800-557-7394 - Undergraduate students may be eligible to receive additional Federal Direct Unsubsidized Loan money as a result of a Parent Plus Loan denial. Your child is not obligated to borrow these funds – additional amounts are listed below. If you would like more information about these additional funds, please contact our office.
| Additional Unsubsidized Loan Amount | |
| Class | Additional Amount |
| Freshman, Sophomore | $4,000 |
| Junior, Senior | $5,000 |
Repayment Terms
Interest begins to accumulate upon the first disbursement. Repayment begins 60 days after the final disbursement during the academic year in which the loan is disbursed, or you have the option of deferring the loan payments until the student graduates, withdraws, or drops below half-time enrollment status. You will be responsible for repaying both the principle and accumulated interest. The maximum repayment period is generally 25 years. Payments would be made directly to your federal loan servicing company. Information on how to contact your specific company is available on the federal website.