The Parent PLUS Loan
Lender Comparison Chart:
2009-2010 Parent PLUS Lender Comparison
The Parent Loan for Undergraduate Students (PLUS) is available for eligible parents to borrow on behalf of their dependent, undergraduate student. The student must be enrolled at least half-time (6 credits) in an eligible degree-seeking program.
The PLUS Loan is a federal loan that is processed through private lenders, similar to the Federal Stafford Loans. The PLUS loan is a credit-based loan. This means that even though a student may be awarded a PLUS loan as part of their award package, the lender still must approve the loan.
The PLUS loan is not based upon "need", but it is recommended that the student and parent complete the FAFSA to expedite the processing of the loan and to ensure that student receives consideration for all other forms of aid for which they may be eligible. Repayment of the PLUS loan begins within sixty (60) days of disbursement. The loan is in the parent borrower's name rather than the student's.
USA Funds has developed a guide for parents who are interested in using this loan product to assist in funding educational expenses. Click here to take advantage of this vital information.
LOAN ELIGIBILITY
In order to qualify to receive a student loan (Stafford or private), a student must be enrolled and attend classes/submit assignments on at least a half-time basis, regardless of stage of his/her program. Half time is defined as at least 6 hours per semester for undergraduate students.
If a student plans on dropping below these levels, he/she should contact Central Financial Aid before making any final decision or submitting paperwork. Your counselor will go over with you how dropping below half-time status will affect your loan situation.
The total loan amount a student is eligible for is based on the following formula:
Cost of attendance (COA) - Aid (scholarships, etc.) = Total Loan Eligibility
The following formula determines a student's eligibility for a Subsidized Loan:
COA - Expected Family Contribution (EFC) - Aid = Subsidized Loan Eligibility.
APPLYING FOR AID
Students are encouraged to begin the financial aid application process in conjunction with the required admissions application activity. Although a financial aid award cannot be made until a student is accepted, all necessary paperwork will be on file to expedite the awarding process upon acceptance. Students interested in borrowing a Federal Stafford Loan should complete the Free Application for Federal Student Aid (FAFSA) as soon after January 1st as possible or when previous year’s taxes are completed. Central Financial Aid suggests submitting the FAFSA by March 15th to ensure timely processing and arrival of funds for the Fall semester.
The FAFSA may be submitted one of two ways. The student may fill out the paper application or complete the FAFSA-on-the-Web. The location of FAFSA-on-the-Web is http://www.fafsa.ed.gov. Submitting the FAFSA online greatly reduces the processing time of the application and requires the submission of a signature page.
Early submission of applications helps to ensure the arrival of funds by the final payment deadline. It also allows for necessary information to be available when Central Financial Aid begins the awarding process.
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