PLUS Loan Information

A Parent Loan for Undergraduate Students (PLUS) is a low-interest loan to help you, as the parent borrower, pay for your son or daughter's education beyond high school. The PLUS is available without regard to financial need. However, satisfactory academic progress as well as an adequate enrollment level is required. In addition, the lender (Federal Treasury) is required to determine whether you have an adverse credit history. The parent borrower must be the natural or adoptive parent (or in some cases a stepparent) of a dependent student. You may borrow up to the full cost of attendance, minus all other aid awarded. Additionally, as the parent borrower, you will be responsible for repaying the loan. Loan repayment begins 60 days after the loan has been fully disbursed.  Effective for PLUS loans guaranteed after July 1, 2006, the interest rate will be fixed at 7.9%.

The FIRST step in the Electronic PLUS application process is the completion of the Free Application for Federal Student Aid (FAFSA) by you and your student. You may complete the FAFSA for free over the Internet at www.fafsa.ed.gov. This will determine eligibility for any of the federal aid programs available. You are advised to wait until the student receives a financial aid award offer from ESU before continuing with the PLUS application.

The SECOND step is for a parent borrower to complete the Direct Loan Promissory Note for Parent PLUS Loans on behalf of the student.  This can be done by going to https://dlenote.ed.gov.

The THIRD step in the PLUS process occurs when the funds are disbursed. After direct institutional costs (tuition/fees and campus room/board) have been paid, any excess funds will go directly to you via check. Should you wish for your student to receive the excess funds, make your request by contacting the office of student financial aid at least two weeks prior to the disbursement of the PLUS loan funds.

- PLUS loans are subject to a 3% origination fee and a Federal default fee of up to 1%.  However, an upfront interest rebate of 1.5% is applied back to these fees making the initial disbursement subject to a total 2.5% fee.  In order to keep the up-front interest rebate, a borrower must make their first twelve monthly payments on time.  If this requirement is not met, the amount of the rebate will be added back to the loan.

- You have the right to cancel all or a portion of the PLUS loan proceeds by contacting the Office of Student Financial Aid prior to disbursement.

Deferment of Repayment (Optional)

• • Parent borrowers have the option of deferring repayment based on the enrollment status of the dependent student on whose behalf a Direct Plus Loan was obtained.  Specifically:

• While the dependent student on whose behalf the loan was obtained is enrolled on at least a half-time bases, and
• During the 6-month period after the dependent student on whose behalf the loan was obtained ceases to be enrolled on at least a half-time basis

• • During the deferment period, interest will continue to accrue.  The parent borrower will be sent quarterly interest statements and will have the option of paying the interest as it accrues during the deferment period.
  • The Direct Plus Loan does not have to be fully disbursed in order for a parent borrower to request a deferment based on the dependent student's enrollment status.
  • Parent borrowers must call the Direct Loan Servicing Center (DLSC) at 800/848-0979 to request a deferment based on the dependent student's enrollment status.