PLUS Loan Program Consumer Information & Application Instructions
Available for credit-worthy graduate or professional students and parents of dependent undergraduate students.
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.ed.gov/sa/types/loans/plus
When considering a PLUS loan, remember that your student must be enrolled in at least part time (6 credit hours for undergraduate student OR 3 credit hours for graduate students)
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
Parent and Student are:
· U.S. Citizens or eligible Non- U.S. Citizens
· Not in default on prior educational loans
· Borrows on behalf of the dependent student and is responsible for loan repayment
· Meets federally defined creditworthiness standards
· Enrolled in at least 6 credit hours for undergraduate student OR 3 credit hours for graduate students
· Meeting 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.
4.276% origination fee for loans disbursed between 10/1/2016 and 10/1/2017
Current fixed interest rate is 7%. Rates may change depending on legislation so please visit: https://studentaid.ed.gov/sa/types/loans/interest-rates
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 your dependent 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.
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.
- Parents/Graduate students go to studentloans.gov and choose sign-in
- Parents sign in using your FSA ID (username & password) not your child’s or Graduate students will sign-in with your own FSA ID
- Once signed in – Choose Request a Direct PLUS Loan
- Then choose Parent PLUS or Grad PLUS – you can now complete the application
- Once you have completed the application – return to the main page of studentloans.gov and choose Complete Master Promissory Note (MPN)
- Then choose Parent PLUS or Grad PLUS – you can now complete the MPN for your PLUS Loan
- If your PLUS Loan is endorsed by a co-signer, then you will be required to complete PLUS Counseling
Options if Denied Based on Credit
The Direct Loan Origination Center will notify the parent borrower via U.S. Mail if the Federal Direct Parent PLUS loan credit check is denied. The 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
- Your child may be eligible to receive additional Federal Direct Unsubsidized Loan money as a result of your 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|