Federal Direct Parent PLUS Loan

What is a Parent PLUS Loan?


A Parent PLUS Loan allows for a parent to help pay for their child's education through a fixed rate federal loan. PLUS Loans can help cover educational expenses not covered by other financial aid resources. The loan is in the parent's name; not the student's and in order to be approved, the borrower must not have adverse credit. The US Department of Education is the lender for the loan and the parent is responsible for repaying any amounts borrowed. In order to have a PLUS Loan awarded on the student's account, the student must have a FAFSA application on file and be enrolled in at least 6 credits per semester.

As a family, you should weigh the options between a Federal Direct Parent PLUS Loan (parents of dependent undergraduate students only), Private/Alternative Parent Loans (any credit-worthy person who is not the student wishing to gift the cost of education on their behalf) and a Private/Alternative Student Loan (student & credit-worthy co-signer).

To view a side-by-side comparison of Parent Plus Loans vs. Private Parent Loans vs. Private Student Loans, please click here.
 



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Quick facts about the Parent PLUS Loan

Am I eligible?

When should I apply?

How much can I borrow?

What Loan Period should I select?

How do I apply?

I was approved for a Parent PLUS Loan, what are my next steps?

I was denied for a Parent PLUS Loan, what are my next steps?

Additional Important Information

Federal Direct Loan Disclaimer


Quick facts about the Parent PLUS Loan


Quick Facts:

    • Only applicable for Dependent, Undergraduate students.
    • Has a fixed interest rate of 7.00% for loans disbursed between July 1, 2017 - June 30, 2018
    • Borrower is charged an origination fee
      • 4.272% for loans first disbursed between October 1, 2017 - September 30, 2018
    • During the application process a parent can choose to defer payments while the student is enrolled in school; and/or 6 months post enrollment.
    • Interest accrues from the date the loan disburses.
    • To be approved, the parent must pass credit check/not have adverse credit history.
    • If denied, the student may be eligible to receive additional unsubsidized loan money.
    • It is recommended that a student borrows the maximum under the Federal Direct Loan program first. The Federal Direct Loan maximum for one academic year is based on the student's grade level, remaining aggregate loan eligibility and Cost of Attendance.

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Am I eligible?


To receive a Direct Parent PLUS Loan, you must:

    • Have a completed FAFSA application on file.
    • Not have adverse credit history
      • An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.
    • The borrower must be the parent (biological or adoptive, or in some cases stepparent) of a dependent undergraduate student.
    • Both parent and student must meet all other general eligibility requirements for federal aid.
    • Student must be making Satisfactory Academic Progress (SAP)
    • The student must be enrolled in at least 6 credits (half-time).
    • The student must be a degree-seeking student.
    • The Parent who applied must complete Direct Loan Counseling and a Master Promissory Note before the Parent PLUS Loan can be disbursed (See the section below: I was approved for the Parent PLUS Loan, what are my next steps?)

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When should I apply?


Returning Students:

    • We request that your parent does not apply for the PLUS loan until after May 1; prior to the year the student will attend (i.e. May 1, 2018 for the 2018-2019 Academic Year).

Incoming Freshman:

    • We normally request that your parent applies for the PLUS loan between April 1 and June 15; prior to the year the student will attend (i.e. May 1, 2018 for the 2018-2019 Academic Year). 
    • This will allow sufficient time for processing of the loans prior to billing for the fall semester. 

NOTE: Applications for each upcoming academic year are not available until April 1st.

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How much can I borrow?


The maximum amount your parent can borrow in the PLUS Loan is the Cost of Attendance minus any other financial aid awarded.

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What Loan Period should I select?


NOTE: Please be advised that if you do not indicate a loan period on your loan application, the loan term will default to the academic year (Fall/Spring). It is EXTREMELY IMPORTANT to indicate correct loan term dates to ensure the correct processing of your PLUS loan.

2017-2018 Loan Period Dates available:

(You can begin applying for loans for fall/spring after May 1, 2017.)

    • Fall/Spring: 08/28/17 - 05/12/18
    • Fall Only: 08/28/17 - 12/17/17  - (This option will no longer be available after 12/17/2017)
    • Spring Only: 01/22/17 - 05/12/18 

2018-2019 Loan Period Dates available:

(You can begin applying for summer loans after April 1, 2018, and begin applying for loans for fall/spring after May 1, 2018.)

    • Summer Only: 05/15/18 - 08/18/19 (no matter what session you are enrolled) - The student must have a Summer Aid Application on file requesting to use the Parent PLUS Loan.
    • Summer/Fall/Spring: 05/15/18 - 05/12/19 - The student must have a Summer Aid Application on file requesting to use the PLUS loan throughout the entire academic year.
        • If you choose the option Summer/Fall/Spring and apply for a specific amount, it will be processed and split into thirds.
        • If you apply and choose the option "wish to receive up to the maximum cost of attendance", your loan will be processed based on the maximum budget for each semester.
    • Fall/Spring: 08/28/18 - 05/12/19
    • Fall Only: 08/28/18 - 12/17/18
    • Spring Only: 01/22/18 - 05/12/19

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How do I apply?


To apply for a Direct Parent PLUS Loan, you must:

    • Go to: www.studentloans.gov and log in using your (the parents) information. DO not log in with your student's information. To log in, you will need:
        • FSA User ID and Password - this is the same ID and password used to sign the FAFSA
        • To create an FSA User ID click here.
            • If you have forgotten your username or password, click here.
        • Once logged into your account, click on the link in the center of the page that says, "Apply for a PLUS Loan"; then click on the link that says "Complete PLUS request for Parent Borrowers"
            • Make sure you (the parent) are completing the application for the Direct PLUS Loans available to eligible parents of eligible dependent undergraduate students. Parents must be logged in using their own FSA ID.
        • Follow directions carefully and complete each section entering student information, loan term requests and period (see above), school information, amount to request, parent information, and confirm submission of credit check.
        • Once the application has been submitted, you will receive an approval or denial.
        • If approved, follow the directions below on how to complete a Master Promissory Note.
        • If denied, click here.

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I was approved for a Parent PLUS Loan, what are my next steps?


If you have been approved the Direct Parent PLUS Loan, and choose to borrow the funds, you MUST complete the following:

Master Promissory Note (MPN):

      1. Log into your account at studentloans.gov using your FSA user ID and password
      2. Click on the link in the center of the page that says "Complete Loan Agreement (MPN)".
      3. On the next screen, make sure to click the option that pertains to you "PLUS MPN for Parents"
      4. Enter personal information and Select Millersville from the list of PA schools
      5. Provide two personal references. These references are in no way responsible for your loan repayment.
      6. Continue clicking through each step until you have signed and completed the form.
      7. You will receive a confirmation once your Master Promissory Note has been completely submitted
NOTE: It is Federal Regulation that this step must be done so that the terms of your loan and repayment are understood and agreed upon. Until you complete this steps, you will not receive any Federal Loans awarded to you.

NOTE: If you have an endorser (co-signer) on your loan, you will need to complete a new MPN each year, and ensure that the endorser has completed the Endorser Addendum.

If you were originally denied and are now approved for the Direct Parent PLUS Loan due to appealing the decision or adding an endorser to your loan you ALSO must complete:

Plus Loan Credit Counseling:

      1. Once you have logged into your account, you will find the link for Plus Credit Counseling in the left-hand Navigation bar, under the Tab "Plus Loan Process".
      2. Click on the link that says: Complete PLUS Counseling
      3. Select the option: Parent of an Eligible dependent undergraduate Student and hit "continue"
      4. Complete each page and submit
      5. You will receive a confirmation once your Plus Counseling has been completely submitted.
NOTE: It is Federal Regulation that this step must be done so that the terms of your loan and repayment are understood and agreed upon. Until you complete this steps, you will not receive any Federal Loans awarded to you.

I was denied for a Parent PLUS Loan, what are my next steps?


Parents who are denied a Parent PLUS loan have four options. They can try to appeal the decision with the Department of Education, add an endorser (co-signer) on the loan, or they can choose to not pursue a PLUS loan at this time, or remain undecided. Choosing the option to not pursue the loan or remaining undecided will result in the student being awarded additional unsubsidized loan funds up to the amount of $4000 for students with earned credits between 0 and 59, and up to $5000 for students with earned credits between 60 and 180.

Please click here to see additional information on your Parent PLUS Denial Options and how to complete them.

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Additional Important Information


  • The school can refuse to certify a student's loan application OR certify the loan for an amount less than the student would otherwise be eligible. The school must document the reason for its action and explain the reason to the student in writing. The decision of the school is final and cannot be appealed to the Department of Education.
  • During the repayment period, under certain circumstances, the USDE may grant deferments, forbearances, or cancellations. Parent must contact USDE.
  • Yearly limit is equal to the student's Cost of Attendance minus any other financial aid received by the student.
  • Parent may cancel all or a portion of the loan within 14 days after the date the school has sent notification that the loan funds have been credited to the student's account. Contact the Office of Financial Aid to cancel the loan.
  • Interest is charged from the date the first disbursement is made until the loan is paid in full.
  • Parent has up to 10 years to repay loan depending on the size of the parent's debt.

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Federal Direct Loan Disclaimer


In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Stafford Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.

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