Federal Direct Parent PLUS Loans
Parents will be required to complete their Application & Master Promissory Note with the Department of Education.
Please Note: There are 2 parts to the PLUS Loan Process.
Complete the PLUS Loan Application: Runs the parents credit and gives the school information they need to create your Direct PLUS Loan. The parent does need to be credit approved in order to borrow this loan.
Complete the Master Promissory Note: On the www.studentloans.gov website, click "Complete MPN (Master Promissory Note)" then choose the option for "Parent PLUS". This MPN is your legal loan agreement, which explains the terms and conditions of your loan.
PLUS Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documented to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.
PLUS Counseling can be completed voluntarily at any time. If PLUS Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Counseling completion, your PLUS Counseling requirement will be considered to be fulfilled.
Marist College participates in the William D. Ford Direct Lending Program. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. Marist College policy states that the FAFSA must be completed before a Direct PLUS Loan can be awarded. This change will require all new borrowers to complete Master Promissory Notes with the Department of Education.
Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Parents of all income levels are eligible; however, regulations require a credit worthiness evaluation.
- Marist College policy states that the FAFSA (Free Application for Federal Student Aid) must be filed for that school year and the dependent student must be enrolled in an undergraduate degree program in order for Marist to certify the PLUS Loan.
- Borrowing limit is the Cost of Attendance minus any other aid.
- The Interest rate for the PLUS Loan is always fixed for the life of that loan. However, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Please visit www.studentloans.gov for the most current interest rates. You may opt to have all payments deferred until after the student's graduation.
- All Direct Loans are subject to fees. Loans first disbursed on or after Oct. 1, 2016 and before Oct. 1, 2017 are subject to a 4.276% loan fee. Loans disbursed between Oct. 1, 2017 and Oct. 1, 2018 will be subject to a 4.264% loan fee. Loan fees will be determined every October. The fees will be deducted from the loan proceeds prior to disbursement. Disbursements are sent directly to Marist College, two per loan period.
- PLUS Loan Increase Policy: If the credit check has not expired on an existing loan application, the parent can request an increase of their loan via email to firstname.lastname@example.org. The email must come from the parents email address listed on the initial application. If the credit has expired (over 90 days), parents should initiate a new application for the increased loan funds at www.studentloans.gov.
- Repayment begins 60 days after the 2nd disbursement with up to 10 years to repay depending on amount borrowed. Parents who are interested in deferment for payments should contact their lender directly.
- Loan Forgiveness for the death or permanent disability of either the borrower or the student. (This is not available with Private Loan Financing)
- The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov. All Title Iv loans are reported to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
Parent eligibility requirements for a Direct PLUS Loan
You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.
Applying for a PLUS Loan and the Master Promissory Note (MPN)
To take out a Direct Loan for the first time, you must complete the FAFSA, a PLUS Application, and master promissory note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).
If you are borrowing Direct PLUS Loans for more than one student, you'll need to complete a separate MPN for each one. To complete an MPN online, you will be required to use your Department of Education-issued PIN (not your child's). If you do not have a PIN, you may request one from the official PIN site.
If, at any time, you are not satisfied with the service you receive, please contact our office.