What is a PLUS Loan?
A PLUS Loan is a Parent Loan for Undergraduate Students. Funds for these loans come from private lenders through a federal program for parents of dependent undergraduates without an adverse credit history. Students must be enrolled at least half-time and in good academic standing. These loans are not based upon determination of financial need. The parent applies for this loan and is responsible for repayment.
Graduate Students may borrow a Graduate Plus Loan from private lenders through the Federal Family Education Loan Program. They must exhaust their subsidized and unsubsidized Stafford eligibility before they are eligible to borrow a Graduate Plus Loan. Graduate Students must not have an adverse credit history and must be enrolled at least half-time, in good academic standing. These loans are not based upon determination of financial need.
How much can I borrow?
At least $200, but not to exceed the student's estimated cost of attendance minus the student's estimated financial assistance for the academic period.
What are the interest rates?
You pay a three percent origination fee that is deducted immediately from each loan disbursement. That's $30.00 for every $1000.00 of loan money. There is also a 1% guarantor fee that is assessed on each loan. PLUS loans made during the period of July 1, 2008 to June 30, 2009 have an interest rate of 8.5%.
When are the payments due?
Payments are due monthly and begin 60 days after the disbursement of the first loan funds. Parents and graduate students may apply to the lender for a deferment of payment during the enrollment period; however interest will continue to accrue during the deferment period. The number of years allowed to pay back this loan is negotiated between the lender and the parent, but the typical repayment period is ten years.
How do I apply?
- Graduate students must fill out a FAFSA form. Parents of undergraduate students are not required to fill out a FAFSA form.
- Log on to www.hesaa.org/federalplusapply.html where you may choose your lender from Drew’s Suggested Lender List. If you choose not to borrow from a lender on our Suggested Lender List, additional information will be provided on this website on how to choose an alternate lender.
- HESAA will provide you with instructions on how to electronically fill out your master promissory note.
- The lender will transmit your funds electronically to Drew's business office, who will then credit the funds to your account.
- If you have a credit on your account after receiving loan funds, and are not on any payment plan, the business office can usually mail you a check for the credit on your account 7-10 days after you call them with your request (973/408-3114).
Drew University uses the open platform loan processing system, ELM. This program is simply the electronic format which allows Drew University to process your loan from any lender of your choosing in a swift and efficient manner.
