The Federal Direct Parent PLUS Loan is available to parents of dependent undergraduate students to assist in covering direct and indirect costs not covered by the financial aid award.
The student must meet federal and institutional eligibility requirements and file a Free Application for Federal Student Aid (FAFSA) in order for a parent to be eligible to borrow a PLUS loan.
The parent must:
Your debt-to-income ratio and employment status are not taken into consideration; however, adverse credit typically results in a PLUS loan denial. Additional information about the credit approval process including what is adverse credit, credit appeals and the use of an endorser is available online.
Students are charged tuition, fees, room and meals by term (fall and spring). We strongly encourage you to request a fall/spring loan if your student plans to attend both terms. Funds for a spring term are not disbursed until the fees are due in early January so interest does not accrue on funds that have not been disbursed.
The interest rate on loans disbursed between July 1, 2017 and June 30, 2018 is 7.0%. Remember that interest begins to accrue as soon as funds are disbursed. Please note that loans for the 2017-18 academic year cannot be disbursed earlier than 10 days prior to the beginning of the fall term which begins August 24, 2017.
PLUS loans carry a loan fee that is deducted from the gross loan proceeds. The loan fee for PLUS loans with the first disbursement after October 1, 2017 is 4.276%. For example, the net proceeds on a $10,000 loan would be $9,572. Due to federal sequestration the loan fee is expected to change after October 1, 2017.
You should borrow as little as possible! However, you may borrow up to the amount listed on your student’s award letter. You may also request the maximum available loan during the application process.
Once all requirements are met our office will email you from firstname.lastname@example.org with a final loan amount.
Yes, your loan can be increased by submitting a new Parent Loan application at www.studentloans.gov or by contacting our office as long as it does not exceed your loan eligibility. Your loan can also be decreased by contacting our office at email@example.com. You should carefully review the student account statements (available through the parent portal on my.coe.edu if your student has granted access) to determine if you need to adjust your loan amount.
Loan proceeds are applied by the Coe College Office of Financial Aid directly to the student account, provided that all administrative requirements have been met. A loan for two terms will be divided in half. Our office will communicate directly with the parent borrower via the email used on the Parent Loan application that the loan is approved and the final loan amount. Please review this email and contact our office with any questions.
Yes, you can use the Parent Loan to cover charges that are not billed by the college such as books, travel expenses, study abroad, etc. However you should consider the timing of loan disbursements, any outside scholarships and unearned work study when you are determining if you have borrowed enough Parent PLUS loan to generate a refund. Remember too that the refund will be issued as you requested on the loan application (to the borrower or to the student). The Office of Financial Aid is happy to review the amount you have borrowed against expected charges in order to help you determine if you have borrowed enough to have excess funds. If you will have excess funds we strongly suggest that you complete an ACH Authorization Form so your refund can be deposited directly into your personal bank account. This can be especially important if you are borrowing to cover book costs at the beginning of the semester. The other choice is for the Coe Student Accounts Office to cut a paper check and mail it to the address of the refund recipient.
Repayment of the Parent (PLUS) loan begins within 60 days of the full disbursement of the loan. For a full year loan repayment will generally begin sometime in February. Information about repayment terms and timing will be provided to you by your federal loan servicer. Repayments are made directly to the loan servicer. Borrowers generally have from 10 to 25 years to repay the Parent PLUS Loan. To calculate estimated loan payments, use the Direct Loan Repayment Calculator. Additional information is also available on the Federal Student Aid website under Repayment.
It is possible to delay (defer) loan repayment until after your student is no longer enrolled at least half-time (two course credits). Generally the request for deferment is made at time of application and confirmed with the loan servicer. The parent borrower also has the option to request an additional six month post-enrollment deferment after the student drops below half-time, graduates, or withdraws. Parents must request separate deferments for each loan period through their federal loan servicer. You may make interest payments during deferment periods and there is no penalty for early repayment. Repayment Chart
Many students and families need to borrow additional funds to meet the cost of education. The decision becomes whether to borrow through the Parent Loan or a private student loan program.
Fast facts about Parent Loans vs. Private Student Loans
Our office is not able to recommend a specific lender to you. However, for your convenience we are able to provide you information about historical borrowing trends at Coe College.
Loans that require "certification" from the college are generally going to offer you better terms and disburse funds directly to the college. Our office is committed to working with whatever financing option best suits your needs.
Additional information about choosing a loan that is right for you is available from the Consumer Financial Protection Bureau.