The Federal Direct Parent Loan for Undergraduate Students(PLUS) loan is a credit-based loan available to parents of dependent undergraduate students who are enrolled at least half-time (6 credits) in a degree seeking program.
- There is a fixed interest rate of 7.21%
- The loan origination fee is 4.288% (for plus loans first disbursed on or after 7/1/14 and before 7/1/15)
- The borrower has the option of deferring the loan repayment until 6 months after the student graduates, withdraws from school, or enrolls for less than 6 credit hours in a semester.
- For more information on the Federal Direct PLUS loan please visit the US Department of Education’s website.
When do I begin the PLUS loan process?
Borrowers may begin applying for the PLUS loan on March 30, 2015 for the 2015-2016 academic school year. Please apply for the Plus loan no later than June 30, 2015. We strongly recommend that borrowers adhere to this deadline date in order to assure that funds will be secured by the July payment deadline.
How do I apply for the PLUS loan?
In order to initiate the PLUS loan process, students must file the Free Application for Federal Student Aid (FAFSA) or renewal FAFSA for the 2015-2016 academic school year.
The borrower can log into the US Department of Education’s studentloans.gov website to Complete PLUS request process. Applicants must have a FAFSA ID to log-on to the site. (Applicants create an ID at https://fsaid.ed.gov/npas/index.htm.) Information on approved loans will be automatically forwarded to the Office of Financial Aid for processing. (Please note: if the Parent Plus Loan is approved, the borrower must complete a Plus Loan Master Promissory Note MPN). The MPN can be completed via the studentloans.gov website.
To apply for a PLUS loan, the borrower must be the biological (including non-custodial), adoptive or step-parent of the student. Also you must be a U.S. Citizen or Eligible Non-Citizen (e.g. Permanent Resident) to be eligible for this loan.
All approved PLUS loans will be processed within 10 business days from the time that a completed application is received by Delaware State University. DSU will have the ability to view an application within 24 hours from the time that it is completed. However, during our peak processing season, loans may take up to 15 business days to be processed.
How much can I borrow?
The maximum amount that a parent may borrow for the academic year is the difference between the cost of attendance (tuition, fees, room and board, books, etc.) and the financial aid that the student is already receiving for that year. When applying for the loan before the aid package has been determined, we recommend that you request the maximum amount on the application. If the student receives additional financial assistance after the PLUS loan is certified, one or both disbursements may be reduced or cancelled to prevent over-awards.
If the borrower decides to not apply for the maximum amount of the Parent Plus Loan, they can indicate a specified amount on the application. The amount indicated will be processed for the entire academic year and a 4.288% loan origination fee will be deducted from the loan amount each semester.
How do I request an increase in the PLUS loan?
To request an increase in an approved Plus Loan, please click on the link below and fill in the necessary information to complete the PLUS increase request form. An increase cannot be processed if:
- The student has already received a financial aid package up to the maximum cost of attendance allowed
- The Plus loan has been approved with a co-endorser (in such cases the borrower must reapply for a new loan and have the co-endorser re-sign for the loan)
- The first disbursement of the PLUS has already been paid to the student’s account
What are my options if I am denied for a PLUS loan?
If the loan is denied due to adverse credit, the borrower has several options:
- Reapply utilizing an endorser
- The other parent can apply utilizing their information to possibly obtain an approved response
- You may allow your student to be awarded the additional Federal Direct Unsubsidized Stafford Loan
- Request an appeal of the denial with the Department of Education.
- The additional Unsubsidized Stafford loan amount available each year to freshman and sophomore students (up to 59 earned credit hours) is $4000. Juniors and seniors (60 earned credit hours or more) can receive a maximum amount of up to $5000.