Direct PLUS Loans
Parent PLUS Loan
- Borrower is parent of a dependent undergraduate student
- Can be discharged in the event of death or disability
- Parent must pass a credit check. If parent does not pass credit check, student can get additional Direct Unsubsidized Loan or parent can add a credit-worthy endorser (co-signer).
- Can borrow up to the cost of education less any other aid received
- 7.9% fixed interest rate
- Federally mandated 4% fee subtracted upon disbursement
- Repayment begins 60 days after loan is fully disbursed but payment can be deferred while student is enrolled. Parent must contact Direct Loan Servicing at 800-848-0979 to request deferment or indicate preference on loan application.
- To apply, log into www.studentloans.gov with the parent/borrower PIN number and personal information. The Financial Aid Office will be notified of the credit decision within 1-3 days
- Be sure to compare the Direct PLUS Loan with the Private Student Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a private loan may be more cost effective. With the federal fee and a 7.9% fixed interest rate for all borrowers, the PLUS Loan APR is about 8.5%. Borrowers with excellent credit may be able to get a lower interest rate through a private lender.
Steps to Receive a Parent PLUS Loan:
- File FAFSA and apply for PLUS Loan at www.studentloans.gov.
- Complete PLUS Master Promissory Note (MPN) by logging into www.studentloans.gov
Direct GRAD PLUS Loan
- Borrower is a student in a graduate program
- Can be discharged in the event of death or disability
- Student must pass a credit check
- Can borrow up to the cost of education less any other aid received
- 7.9% fixed interest rate
- Federally mandated 4% fee subtracted upon disbursement
- Automatic deferment for Grad PLUS borrower while enrolled (at least 6 credits)
- Can be consolidated at fixed rate with other federal loans
- Be sure to compare the Grad PLUS Loan with the Private Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a private loan may be more cost effective. With the federal fee and a 7.9% fixed interest rate for all borrowers, the PLUS Loan APR is about 8.5%. Borrowers with excellent credit may be able to get a lower interest rate through a private lender.
Steps to Receive a Graduate PLUS Loan:
- File FAFSA and apply for PLUS Loan at www.studentloans.gov.
- Complete PLUS Master Promissory Note (MPN) by logging into www.studentloans.gov
- Complete PLUS Entrance Counseling by logging into www.studentloans.gov
For helpful loan repayment calculators and other helpful resources, visit
www.geneva.edu/object/financial_literacy.
