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  Federal Direct Parent PLUS Loan  
 


Page Contents

The Federal Direct Parent PLUS Loan enables parents to borrow to help pay for the educational expenses of their dependent, undergraduate student.

Parent PLUS Loan Eligibility Requirements

To borrow a Parent PLUS Loan—

  • The parent must be the student's biological or adoptive mother or father.
  • In the case of separation or divorce of a student’s parent, either parent may borrow the Parent PLUS Loan.
  • If a parent has remarried, parent must include spouse's information when completing the FAFSA.  In this instance, a stepparent (whose information appears on the FAFSA) is also eligible to borrow the Parent PLUS Loan.
  • The parent is required to be either a United States citizen, permanent resident or other eligible non-citizen
    • if parent is a non-citizen, an Alien Registration Number must be listed on the Request for a Federal Direct Parent PLUS Loan (see below), and
    • parent must provide a photocopy of the front and back of his/her Alien Registration Card (I-151 or I-551).
  • The parent cannot be in default on a federal education loan.
  • The parent cannot owe an overpayment on a federal education grant.
  • The parent cannot have an adverse credit history.

The Parent PLUS Loan Interest Rate and Loan Fee

Effective July 1, 2006, the interest rate on a Parent PLUS Loan is —

  • 8.5% fixed rate.

The loan fee on a Parent PLUS Loan is —

  • 4% (the initial 4% fee is adjusted down to allow for a 1.5% repayment rebate).

Requesting a Parent PLUS Loan

Parents of dependent students are automatically considered for a Federal Direct Parent PLUS Loan when applying for financial aid.

  1. To apply for financial aid, parents and students must complete and submit a FAFSA.
  2. Make sure you request that the student's information be sent to SDSU when completing the FAFSA. 
        • SDSU's Federal school code is 001151
  3. After your student's application is processed, he/she will receive an e-mail (or paper) notification with instructions to go to the Office of Financial Aid and Scholarship's Web site and log on to AidLink to access his/her award.
        • Parent PLUS Loan eligibility will be included in the dependent student's award.
        • In some cases, a parent and student may be required to submit
           certain verification documentation to this office.
  4. If a parent wishes to borrow a Parent PLUS Loan, the parent should complete the Request for A Federal Direct Parent PLUS Loan form and submit by FAX or mail. 
    Adobe Reader must be installed on your computer to download the form.  For a free copy of Adobe Reader link to Adobe and follow instructions.  
          
    Request for a Federal Direct Parent PLUS Loan
    Student attended SDSU during...
    Enrollment Period
      
  5. After the Office of Financial Aid and Scholarships (OFAS) receives the completed Request for A Federal Parent Direct PLUS Loan form , this information is electronically submitted to the Direct Loan Servicing Center. 
  6. The Servicing Center will transmit the information to a credit bureau for evaluation. An acceptable credit history is necessary to continue the Parent PLUS Loan process.

Disbursement - Receiving Financial Aid Funds

Parent PLUS Loan funds are disbursed to the parent borrower only after all the university charges have been paid for the term (including housing, if applicable). The OFAS does not begin preparation to disburse a Parent PLUS Loan until all conditions listed below have been met.

  • Student must have received a financial aid award.
  • All financial aid holds must be cleared.
  • Any Cashier's holds that may exist must be cleared.
  • Student must be enrolled in at least 6 units.
  • If any registration fee deferments and/or housing payment postponement were applied to the student's account, the amounts will be deducted from the award amount. 

One-half of the Parent PLUS Loan is disbursed during the fall and the second half during the spring.

If all conditions are met, parents who apply and complete the Parent PLUS Loan process early may receive Parent PLUS Loan funds at the beginning of the term.  For more information about the disbursement of aid, other than the Parent PLUS, see Disbursement - Receiving Financial Aid Funds.

Repaying the Parent PLUS Loan

Repayment usually begins within 60 days after the loan is fully disbursed (typically the spring term).

Loans borrowed through June 30, 2008: You must repay both principal and interest while your student is in school

Loans borrowed on or after July 1, 2008: You may request deferment of repayment while your student is enrolled at least half time. Interest accumulates and capitalizes while in deferment

Calculate Your Payments Before you Borrow:

You will use the PLUS Loan Repayment Calculator Web page.

  1. Make sure your Internet browser is either Netscape Navigator 4.0 or higher, Internet Explorer 5.5 or higher, or Mozilla Firefox 1.5 or higher.
  2. Go to the Direct Loan Calculator Web site at: http://www.ed.gov/offices/OSFAP/DirectLoan/RepayCalc/dlentry1.html
  3. Select "Direct Loans" as the Loan Type.
  4. The current interest rate is automatically inserted.
  5. Enter various loan amounts until you find a match with your needs.
  6. Click on the "Calculate" button.  It will display estimated payments for each repayment plan.

Useful Links

For detailed information on Direct Loans, go to the student guide and the Direct Loan Web sites.