Federal Direct Parent Loan for Undergraduate Students (PLUS)
The Direct PLUS is a fixed interest rate loan created by the federal government to help creditworthy parents pay for their dependent student’s education beyond high school. Federal Direct PLUS loans are not restricted to a student’s financial need and can help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
The U.S. Department of Education will perform a standard credit check. If approved, the parent is responsible for paying the principal amount of the loan and all interest that accrues from the date of disbursement until the loan is paid in full. Repayment begins within 60 days after the loan is fully disbursed. However, the parent, upon his or her request, can defer payments on a Direct PLUS loan if the student is enrolled at least half-time. The loan amount may not exceed the dependent student’s cost of attendance minus other financial aid for the loan period. If the student’s parents are determined to have adverse credit history, the student may still receive a Direct PLUS Loan if they obtain an endorser who does not have an adverse history. An endorser is someone who agrees to repay the Direct PLUS Loan if the student/parent does not repay the loan.
If a student’s parents cannot obtain a PLUS loan the student is allowed to borrow additional unsubsidized Stafford loan funds. The student must be enrolled at least half time to receive a Direct PLUS Loan. To determine a student’s eligibility for a Direct PLUS loan, the student must complete a Free Application for Federal Student Aid. In addition, a complete financial aid file is required before a Direct PLUS loan will be certified. Interested students must print a Direct PLUS certification/authorization form and a Direct PLUS Request form from www.vernoncollege.edu/financial-aid-forms.