Parent PLUS Loan
Who may borrow?
You may borrow if you are the parent/stepparent of a dependent student, you are not in default on any federal education loans, and you are a U.S. citizen or eligible non-citizen.
How to apply for PLUS
- Student must accept the Parent PLUS on TitanConnect
- Complete the PLUS request process on line.
The loan limit for each year is the annual cost of education (the "budget") minus other financial assistance. If your requested amount is too high, it will be reduced to fit within the budget.
Under Direct Loans, the interest rate is 7.9%.
The Federal Direct PLUS Loan Program requires a 4% origination fee.
The first payment is due within 60 days after each loan is fully disbursed. Therefore the first payment of a fall/winter loan will usually be due in February. Interest begins to accumulate when the first disbursement is made. You may contact the servicer and request forbearance of the principle. Read more about forbearance. (opens in new window)
When to apply
You should begin the application process prior to the beginning of the academic year in order to ensure timely processing. Depending on the time of year, it can take up to 4 weeks from the time UDM receives the Parent PLUS Loan Application until the servicer sends notice of acceptance or rejection.
Steps in PLUS processing:
- Parent completes the PLUS request process on line.
- The servicer performs a credit check.
- The servicer notifies the parent of acceptance or rejection of the loan.
- If the loan is approved, UDM will confirm elgibility, then funds are sent directly to UDM and applied against student's bill.
- Any PLUS funds that exceed UDM charges are mailed to parent borrower as a refund by the Student Accounting Office. Refunds can be issued to the student if the parent selects the "Refund to Student" option on the Parent PLUS application.
Disbursement of the PLUS funds depends on when the loan is approved. By law PLUS funds cannot be disbursed until 10 days prior to the first day of classes in a semester. If that date has passed and the approval process has been completed, UDM will generally disburse the funds within 2 days of approval.
Options if PLUS is not approved
These are some options the family may want to consider:
- Parent may be approved with an endorser (co-signer).
- If the parent is not approved, the student can contact the Financial Aid Office and request additional Unsubsidized Stafford Loan
- Private alternative loans may be available.