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PLUS Loan Frequently Asked Questions
When will I get my denial letter?
After you are denied, you should receive your denial letter with two weeks of the denial date.
Can you send my denial letter directly to the school?
For privacy reasons, we mail a denial letter to your home address. You may then get a copy of that letter to the school so that your son/daughter may request additional unsubsidized Stafford loan funds.
How much can I request?
You may request up to the cost of education (as determined by the school) minus any other aid that the student has received. So, if the cost of education is $14,000 and the student is receiving only a Federal Stafford Loan for $3,500, you may borrow up to $10,500.
Is this loan in the parent's name or the student's?
The Parent PLUS Loan is in the name of the parent who applied. Unfortunately, the loan cannot be switched from the parent's name to the student's.
Apply Now for the PLUS Loan for Parents
When do payments start?
Payments begin about 30-60 days after the last disbursement of school year, which is usually right after the start of second semester.
How do I apply for the PLUS Loan?
Complete the online application or call us toll-free at 1-877-328-1565.
Do I need to fill out the FAFSA?
No. The FAFSA is not required for PLUS Loans. However, it is strongly recommended that you file a FAFSA do so for your child, as the FAFSA opens up a myriad of other financial aid avenues.
How do I check on the status of my PLUS Loan application?
Once you mail your signed and complete Master Promissory Note, be sure to check in with the school's financial aid office to find out when they will be requesting certification.
What is the interest rate?
The interest rate for PLUS loans is set each year by the government, and calculated using the 91-day T-bill rate for the last auction in May of each calendar year, plus 3.1%. Currently, the PLUS loan interest rate for the 2007-2008 academic year (beginning July 1, 2007 and ending June 30, 2008) is fixed at 8.5%.
If you are a parent or legal guardian with PLUS loans and want to lock in the lowest rate possible, you must consolidate your PLUS loans after the final disbursement for that academic year.
Click here to consolidate your PLUS loans.
What are the fees for PLUS Loans?
Parents are required to pay fees of up to 4% of the principal of the loan. These include an origination fee of 3%, charged by the federal government, plus a guarantee fee of up to 1%, charged by the guarantee agency. These fees are deducted from the principal at each disbursement.
Apply Now for the PLUS Loan for Parents
What kind of credit is required for a PLUS Loan?
Generally speaking, your Parent PLUS Loan application should be accompanied by a credit score of at least 625. Things that will drastically reduce your chances of getting the PLUS Loan include:
- Bankruptcies
- Defaulted loans
- Payments overdue by 90 days or more
- Very high debt to income ratio
To ensure that you can obtain a PLUS loan for your child's education, it is essential to have a recent copy of your credit report.
As a service to Parent PLUS Loan customers, we offer you the ability to order your credit report and score online for a nominal fee, in partnership with the Fair Isaac Company.
Click here to learn more about credit.
What if I am not approved for the PLUS Loan?
There are several options if you are not approved for the PLUS Loan, as some applications are declined for reasons other than poor credit. If you are declined, you can:
- Apply for a Private Student Loan
- Apply for unsubsidized Stafford Loan funds
- Find an additional co-signer and apply again
I already have a PLUS Loan. How can I find out more information about it?
You can check the status of your loans by using the National Student Loan Database System (NSLDS). You can access NSLDS for free at www.nslds.ed.gov
When do I begin repaying a PLUS loan?
Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while you’re in school.
