Federal Direct Parent Loan UG
The federal PLUS loan is for parents of dependent students who are enrolled at least
half-time. Qualifying for this non-need-based loan requires a credit check. The annual
limit is the cost of attendance minus any estimated financial aid awards and resources.
The interest rate is fixed at 8.5 percent. A 2.5% loan fee is applied to disbursements.
Repayment begins within 60 days of the loan being disbursed, with a minimum monthly
payment of $50 (possibly more, depending upon the amount borrowed), and the loan must
be repaid within 10 years. As with all other federal aid, a FAFSA must be filed and
eligibility for other aid determined before a PLUS loan can be processed.
To Apply for the PLUS Loan
A comparison of PLUS loans is available on the
Direct Loan PLUS Request Form. If Direct Loan is chosen, the Direct Loan PLUS promissory note is completed online
at
dlenote.ed.gov the parent must have a PIN (Personal Identifier Number) to complete the promissory
note process. Parents who choose a private lender submit a PLUS application online.
The lender forwards the request to the Cal State San Marcos Financial Aid and Scholarship
Office. A parent promissory note is completed through the lender. The PLUS Loan is
disbursed in two payments during the student's enrollment period. If the student has
outstanding University fees, the disbursement pays the fees first. The difference
is sent by check to the parent. The parent borrower may have the PLUS disbursement
paid to the student by indicating so on the paper
Direct Loan PLUS Request Form.