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PARENT PLUS LOANS – Parent loans for students
Direct Plus loans are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Detailed information regarding Direct PLUS loans can be found at the following website: http://www2.ed.gov/offices/OSFAP/DirectLoan/parent.html.
The interest rate for Direct PLUS loans is fixed at 7.00%
An origination fee of 4.276% is charged on the principal balance of all Direct PLUS loans disbursed from 10/1/2016 and prior to 9/30/2017. An origination fee of 4.264% is charged on the principal balance of all Direct PLUS loans disbursed from 10/1/2017 and prior to 9/30/2018.
Applying for Direct PLUS loans
To take out a Direct Loan for the first time, you must complete a PLUS Application and master promissory note (MPN). The MPN is a legal document in which you promise to repay your loans and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loans.
You may complete the MPN electronically online at the Direct Loans e-MPN website: https://studentloans.gov/myDirectLoan/index.action. If you are borrowing Direct PLUS Loans for more than one student, you’ll need to complete a separate MPN for each one. To complete an MPN online, you will be required to use your Department of Education-issued Federal Student Aid (FSA) ID (not your child’s). If you do not have an FSA ID, you may request one from the official FSA ID site: https://fsaid.ed.gov/
In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans you receive to pay for the educational expenses of the same student. Unless your child’s school does not allow more than one loan to be made under the same MPN, you can borrow additional Direct Loans on a single MPN for up to 10 years.
You’ll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.
Credit Check and Endorser Alternative
When you apply for a Direct PLUS Loan, the Department of Education will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.
In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.
Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.
There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child’s education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. SFCC will determine the actual amount you may borrow.
To E-mail Financial Aid:
Federal regulations require that all financial aid inquiries come from your school e-mail address. Please e-mail all financial aid questions from your SFCC email account.
Log into MySFCC, access email account in applications, and create a new email using “firstname.lastname@example.org” in the address bar.
For more information please contact the Financial Aid office, 505-428-1268.