Federal PLUS Loans

A Federal PLUS loan is a low interest loan for parents of eligible dependent undergraduate students. The amount parents may borrow is the Cost of Attendance (COA) minus any other aid (grants, scholarships, loans and work-study) the student will receive for the academic year. The parent must begin repaying both principal and interest within sixty days after the loan is disbursed.

To apply for a parent PLUS Loan, the parent must complete the Federal PLUS loan application online at studentloans.gov for summer school or for the academic year.

Eligibility Requirements for Parent Federal PLUS Loan

  1. Student must have a Free Application for Federal Student Aid (FAFSA) for the current academic year and, if selected, must have completed the verification process.
  2. Student must be enrolled at least half-time.
  3. Student must be maintaining Satisfactory Academic Progress (SAP).
  4. Student must not be in default on any Federal Loans or owe an overpayment on Federal grants.
  5. Student must be registered with selective service.
  6. Student must be a U.S. citizen or eligible non-citizen.
  7. Parent must be the student’s natural parent, adoptive parent or in some cases, stepparent. Grandparents and legal guardians are not considered parents, as defined by the Department of Education, and are not eligible to apply for a PLUS loan.
  8. Parent must be a U.S. citizen or eligible non-citizen.
  9. Parent must have a credit check performed and approved by the U.S. Department of Education.
  10. Parent must sign a Master Promissory Note (MPN) at studentloans.gov. The MPN allows the parent to receive additional funding (within eligibility) without signing another note, unless your previous loan was approved with an endorser or your son/daughter stopped attending school for one full year.

The PLUS Loan Application Process

To apply, follow the link 'Instruction for Federal Direct Plus Loans' for assistance in completing the Federal PLUS Loan online at studentloans.gov.

Parents should start the application process early to meet the fall semester payment deadline. Your information will be processed and sent to the federal processor Common Origination and Disbursement (COD) School Relations Center. A credit check will be performed by COD to determine approval or denial of the loan. After a credit check decision has been determined, COD will notify the parent borrower and the school within 2-10 business days. If the loan is approved, the parent borrower should sign the MPN if needed at studentloans.gov. Review item #10 above. If the credit is denied, the parent borrower may add an endorser (credit worthy co-signer).

If no endorser is added to a credit-denied loan, an additional Federal Direct Unsubsidized Loan will be offered to the student. Students may decline the additional Unsubsidized loan on Aggie Access or by submitting a written request to the Office of Student Financial Aid.

We encourage the parent to plan ahead and borrow the full amount needed for the year and have the amount disbursed in two payments rather than reapplying each semester. This arrangement expedites the process and can also defer loan repayment, since repayment begins 60 days after the final loan disbursement is made for the year.

Disbursement

PLUS loan funds are electronically disbursed to the student’s account to pay allowable charges (tuition, fees, room & board) and other non-institutional charges such as books, Health Center charges, library fines, late registration fees, and any minor prior year charges to be paid. If you are borrowing for the academic year, your loan will be disbursed in two equal payments at the start of each term. If you are borrowing a loan for one semester, the first disbursement will be at the beginning of the semester and the second disbursement after the mid-point of the semester.

Fees

Fees are deducted from the loan amount. This is the current loan Fees information.

Cancellation

You have the right to cancel or reduce your loan within 14 days of disbursement. If you chose to cancel the loan after disbursement, you will be responsible for any unpaid balance due to the University. The University has the right to refuse cancellation of your loan after the 14 days unless the balance is paid in full. If a refund is created based on the PLUS Loan Disbursement, it will be issued to the parent unless otherwise indicated by the parent on the PLUS loan application. A paper check is mailed to the address provided by the parent on the PLUS loan application.

Disclosure

Your loan Information will be submitted to the National Student Loan Data Services (NSLDS) and will be accessible to authorized agencies, lenders, and institutions.

Additional information about the Federal PLUS Loan program may be found at PLUS Loan Basics.

Graduate PLUS loans

Graduate students may borrow up to their cost of attendance, less any other aid for the academic year. Please follow the link for the current low interest rate. Graduate students are required to complete the Graduate PLUS Loan online at studentloans.gov.