Parent (PLUS) Loan
The Federal Direct Parent "PLUS" Loan is designed to help parents of dependent undergraduate students pay the cost of their student’s education. PLUS loans are long-term low interest loans that can ease cash-flow difficulties by providing parents a manageable alternative. The maximum amount a parent may borrow each year is the estimated cost of attendance less other financial assistance. A valid FAFSA must be filed each year a PLUS loan is requested.
Parents are given two options regarding repayment. The first option is repayment begins within 60 days from the date the loan is completely disbursed, and a parent may take up to ten years to repay each PLUS Loan. The minimum payment is $50, but it may be higher, depending on the amount borrowed. The interest rate is a currently a fixed rate of 6.41% (calculated annually) and it is capped at 10.5%. An origination fee of 4.288% is deducted from the loan proceeds. PLUS Loan applications are online. The second option is for the parent to apply for a Forbearance for 12 month periods for the length of the student's college career. The first payment would be due six months after the student graduates, leaves school, or drops to less than half-time enrollment. Note: Interest accrues on the Federal Direct Parent PLUS Loan under option 2. Parents can pay on the accruing interest or let it capitalize.
Please Note: If a student has been awarded the PLUS loan, it must either be accepted or declined on Bearcat Web. If the loan is declined by the student, no further action is required. If the parent would like the student to receive the PLUS loan, the parent must be pre-approved by the Department of Education. If the parent is approved for the PLUS loan, they must complete and return the PLUS Loan Application Supplement form to our office and sign a Master Promissory Note with their lender. After the MPN is signed and returned to the lender, loan money is usually credited to the student's account within 3 to 5 business days after the first day of school.
If the Parent Loan is denied and the student wishes to borrow an additional Federal Direct Unsubsidized Student Loan, the student must complete and return PLUS Loan Credit Decision Form to our office. The student should attach to the form a copy of the notice of PLUS Loan denial the parent received from the lender and forward to the Lander University Financial Aid Office.