2011/2012 Federal Direct Parent Loan (PLUS) Information
The Parent Loan for Undergraduate Students (PLUS) is a federal direct loan that parents apply for on behalf of their dependent undergraduate student. It enables parents with good credit history to assist their children who are enrolled at least half time (6 credits per semester) at a post-secondary school. The loan's interest rate is fixed at 7.9%.
For your convenience, also see the following links for additional information.
- Parent PLUS Application Process
- Options if a parent is denied the PLUS
- How much can I borrow?
- When does repayment begin?
- For additional information see the Federal Student Aid site.
Parent PLUS Application Process
- Complete the 2011/2012 Parent Loan Application Form
- Be sure to review the section on the application that releases PLUS funds.
- Send the completed application to the Office of Financial Aid. After a federal credit check, you will be notified of the outcome by the federal processor.
- If the Federal Direct PLUS is approved, a Master Promissory Note (MPN) must be signed by the parent.
- In order to complete the electronic MPN, a Federal PIN number is required. This PIN is the same one used to sign the online FAFSA. If you do not already have a Federal PIN, you can apply for one at www.pin.ed.gov. It may take 3 business days before the PIN is activated.
- Using the PIN number you have received, go to the Master Promissory Note (MPN). You will chose "Complete New MPN for Parent PLUS Loans" at bottom of page. Once the note has been completed, our office will receive the information in a few days and continue processing the loan.
Note that loan proceeds are split between two semesters. The first half will pay toward student expenses for the fall semester. The second half will pay toward expenses for the spring semester.
How Much Can I Borrow?
A common question for parents who wish to pursue a Federal Direct PLUS is, "How much can I borrow?" To answer this question, a brief description of how we determine eligibility will help.
Students who have been awarded financial aid also have a budget as part of their award package. This student budget, or cost of attendance, represents a ceiling or cap in the total amount of financial aid our office can provide. Parents may borrow PLUS funds up to a student's budget minus all other financial aid and resources.
See the example below:
$13,300...Cost of attendance (this figure is for illustration purposes only)
- $8,025...Total financial aid: offered in other loans, grants, Work-Study,
- $1,000...Resources: scholarships, tuition/fee waivers, Veteran's Benefits, Voc Rehab
= $4,275...Remaining PLUS eligibility
We encourage all parent Federal Direct PLUS borrowers to review costs with their students and to borrow only the amount that will help ensure their success. If you have any questions about the PLUS or other financial aid matters, please call us in Pocatello at (208) 282-2756 or in Idaho Falls at (208) 282-7800.
When Does Repayment Begin?
For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled in at least a half-time basis (6 credits per semester).
Options if a Parent is Denied the PLUS
- If a parent is denied for the Federal Direct PLUS, the parent may re-apply using a credit-worthy co-signer. The Direct Loan Servicer will send you an information sheet and an Endorser Addendum to complete the cosigner process.
- Parents may appeal a Federal Direct PLUS Loan denial by contacting the credit bureau reported on your federal denial letter. This letter will provide contact information as well as a specific reject code to assist you in the appeal process.
- If the parent does not re-apply with a cosigner, it is possible for the student to apply for additional Federal Direct Unsubsidized Loan
instead. The following Direct Unsubsidized Loan limits may be added to the student borrower's combined Direct Subsidized and Unsubsidized loan limits.
- Up to $4000 for a first or second year student
- Up to $5000 for a third, fourth, or fifth year undergraduate
After a parent is denied, if the student wishes to pursue the Unsubsidized Direct Loan, the student should complete the 2011/2012 Dependent Student Request for Unsubsidized Loan Form and submit it to the Office of Financial Aid.