2014/2015 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. See loan interest rate: http://studentaid.ed.gov/types/loans/interest-rates
For your convenience, also see the following links for additional information.
- Parent PLUS Application Process
- Changes to Direct PLUS Loan Programs - Effective March 29, 2015
- New Loan Disbursment Rules
- Options if a parent is denied the PLUS
- How much can I, the Parent, Borrow for my Student's Education?
- When does repayment begin?
- For additional information see the Federal Student Aid site.
- Complete the 2014/2015 Parent Loan Application Form
- Be sure to review the section on the application that releases PLUS funds.
- 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.
Federal regulations require that all Direct Loans (subsidized, unsubsidized and PLUS) must be disbursed in two disbursements based on your enrollment period. Please see New Loan Disbursement Rules.
Changes to Direct PLUS Loan Programs - Effective March 29th, 2015
There are a few changes coming to the Federal Direct PLUS loan programs (Parent PLUS and Graduate PLUS) effective March 29, 2015. We wanted to make you aware of these changes as they may impact you or your parent if you choose to participate in one of the PLUS loan programs. See Changes to Direct PLUS Loan Programs - Effective March 29th, 2015
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.
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).
- See Changes to Direct PLUS Loan Programs - Effective March 29th, 2015
- If the parent is denied, 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
- Student should print and complete 2014/2015 Dependent Student Request for Unsubsidized Loan Form
- Submit form to the ISU Financial Aid Office