What is a Direct PLUS Loan?
A Direct PLUS Loan is a Parent Loan for Undergraduate Students. Funds for these loans come from the federal government 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 Direct Graduate Plus Loan from the federal government. They must exhaust their Direct Subsidized and Direct Unsubsidized Loan eligibility before they are eligible to borrow a Direct 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 4.0 percent origination fee that is deducted immediately from each loan disbursement. Direct PLUS Loans made during the period of July 1, 2011 to June 30, 2012 have an interest rate of 7.9%.
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 Department of Education 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 10 years; however students and parents may apply for a consolidation or an extended repayment plan.
How do I apply?
- All students must fill out a FAFSA.
- Log on to https://studentloans.gov where instructions on how to electronically apply and fill out your master promissory note are provided.
- The Department of Education 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).