PLUS Loan Quick Facts
- These are federal loans that parents can borrow on behalf of their dependent children through the Federal PLUS Loan Program to help their students pay for their education.
- Parents apply each academic year and are approved or denied based on their credit history
- If an application is denied, the student usually becomes eligible to borrow up to $4,000 in additional unsubsidized Direct Stafford loans
- Visit Federal Student Aid for the current interest rates on PLUS loans
- Origination Fee: 4.288% of the loan
- Available Repayment Plans: Standard Repayment, Extended Repayment and Graduated Repayment
To apply for the PLUS Loan
Step 1: Visit Studentloans.gov and sign in to complete the PLUS request process.
Parent Plus Loans may be borrowed by biological, adoptive, step or divorced parents. These loans are borrowed from the Federal Government to help pay your student's educational expenses. During the application process you will be asked whether you would like any credit balance resulting from the PLUS loan to be directed either to you as the borrower or directly to your student to cover educational expenses.
Step 2: The Department of Education reviews your application and makes a determination to approve or deny the application.
Parent PLUS Loans are approved for parents who generally have good credit ratings and are not based on a debt to income ratio. You will be notified in writing by Direct Loans if your application is denied. You will have the option to appeal the credit decision or to obtain an endorser if you still want to pursue a Parent PLUS loan. Otherwise, your student may be eligible to borrow an additional $4,000 in unsubsidized Direct Stafford loans.
Step 3: Once the application is approved log back in to complete the Master Promissory Note for the Loan.
If the parent did not previously complete an Electronic Master Promissory Note, they can log back into StudentLoans.Gov to complete it online. A Federal PIN will be required and can be obtained through the PIN Website.
Parent Plus Loans are disbursed on the same schedule as all financial aid at Front Range Community College. See general disbursement timelines.
For each semester that you request a Parent Plus Loan, the loan will be paid to your student's Front Range billing account, assuming the they are enrolled at least half time (6 or more credits).
You may cancel all or a portion of your loan before it has paid into your student's account. Requests must be made in writing to the Financial Aid Office
Repayment for Parent Plus Loan borrowers begins 60 days after the loan is fully disbursed for the academic year. Borrowers can choose to have repayment deferred while the student is enrolled at least half time, but this will accrue additional interest on the loan while payments are being deferred. Information on repayment information can be found on the Department of Education's Repayment website.