Federal Direct Parent Loan (PLUS)/Grad Plus Loan
Administered by the US Department of Education, the Federal PLUS Loan is a resource to assist credit-worthy parents of dependent students in paying for college costs owed directly to UE and/or for other indirect educational expenses, such as books and supplies. While the parent is not required to demonstrate financial need, the FAFSA must be filed annually in order for a parent to use the loan program. Parents must pass a credit check performed by the US Department of Education to be eligible for this loan. The PLUS Loan is applied for online at studentloans.gov. Parents may borrow an amount up to the maximum cost of attendance, less all other financial aid. The most current information about interest rates and loan origination fees can be found at www.studentaid.ed.gov/types/loans/plus.
How will the loan proceeds be disbursed?
At the beginning of each semester, one half of the annual loan amount requested will be transmitted electronically to your child’s University of Evansville student account to apply toward the UE charges for tuition, fees, room, and meals. A federal origination fee is withheld before the loan proceeds are sent. If PLUS loan funds overpay the charges, the excess may be refunded to either the parent or student, as directed by the parent.
How will parents repay the loan?
Unless you make formal arrangements for a deferment, you will begin repaying a PLUS loan within 60 days after the full amount that you have borrowed for the school year has been disbursed. In general, the parent has 10 years to repay the loan. A PLUS loan may not be consolidated with any student loans.
Electronic Master Promissory Note (MPN)
Federal regulations require that first-time parent borrowers complete a Master Promissory Note for the Parent PLUS Loan at studentloans.gov. (Note: The MPN is also required to be completed by the parent borrower even if the parent has borrowed for another child. The MPN is unique to the parent/child pairing.)
Divorced And Separated Parent Borrowers
Federal regulations allow both of your parents to apply for separate PLUS loans. When both parents apply for a PLUS loan, the excess funds must be disbursed to the student.
Direct Plus Loans For Graduate And Professional Degree Students
Graduate and professional degree students can borrow a Graduate Direct PLUS loan to help with educational expenses beyond what the Direct Subsidized and Unsubsidized Stafford Loans cover. Just like PLUS loans for parents, these are credit-based loans at a fixed interest rate. The graduate student must have used his or her maximum eligibility for the Direct Unsubsidized Loan before using this resource. The maximum eligibility for the PLUS loan is the student’s cost of attendance budget for his or her program minus any financial assistance received. Students apply online for this loan at studentloans.gov. The Graduate PLUS Loan Master Promissory Note (MPN) must also be completed at studentloans.gov before borrowing for the first time in this loan program. The MPN is valid for up to 10 years of future borrowing.