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. 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 is the loan requested and processed?

The PLUS Loan is applied for online at studentloans.gov. In order to log into the student loans website, you must have a Federal Student Aid Username and Password associated to you, the parent. You may create this ID and Password through www.fsaid.ed.gov. Within 48 hours of submitting the application, our office receives confirmation of your application and responds directly to the parent email listed on the application. A supplemental form is provided in order for you to confirm the amount, select an authorization to direct excess funds, or verify your intentions in the case of a denial. This form must be completed and returned to the Financial Aid Office in order for the loan to be finalized.

What if the parent’s credit check is declined?

If the parent’s credit check is declined due to adverse credit, the dependent, undergraduate student is eligible to borrow additional unsubsidized loan funds based upon their grade level. Freshmen and sophomores may borrow up to an additional $4,000 for the year; juniors and seniors up to an additional $5,000 for the year. The OFA will communicate instructions to the student’s UE email regarding accepting the additional loan eligibility. More detailed information regarding the PLUS Loan credit check can be found at the ed.gov website.

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 PLUS Direct Loan to help with educational expenses beyond what the Direct Unsubsidized Loan covers. Just like PLUS loans for parents, the Grad PLUS Loan is a credit-based loan 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.

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