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:

1. File FAFSA and apply for PLUS Loan at www.studentloans.gov.
2. 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:

1. File FAFSA and apply for PLUS Loan at www.studentloans.gov.
2. Complete PLUS Master Promissory Note (MPN) by logging into www.studentloans.gov
3. 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.