Parent Plus
If you’re a parent of a dependent undergraduate student, you can help cover college costs with a Federal Parent PLUS Loan. To get started, your student must first complete the FAFSA. Once that’s on file, you’ll head to studentaid.gov to request the loan. A quick credit check is part of the process, and if approved, you’ll sign a Parent PLUS Master Promissory Note online.
Loan Funds Are Sent
The loan funds are sent directly to the university to pay your student’s bill. Just keep in mind that the government takes out an origination fee of a little over 4% from each disbursement, so the amount applied to the account will be slightly less than what you borrow.
Repayment
Repayment usually begins once the loan has been fully disbursed, but you can choose to postpone payments while your child is enrolled at least half-time and for six months afterward. Interest will continue to accumulate during this period.
If you’re ready to apply or want more details, the place to go is studentaid.gov.
Apply for a PLUS Loan for Parents
Use the Direct PLUS Loan Application to:
- request a Direct PLUS Loan;
- change the amount of a Direct PLUS Loan you previously requested;
- authorize how the school may use your Direct PLUS Loan funds to pay for educational expenses;
- designate who the school pays any credit balance to; and
- request deferment of repayment while the student is in school and for up to 6 months after.