Federal Direct PLUS (Parent) Loan

After a parent has been awarded a PLUS Loan, the following documents are required to receive the PLUS (Parent) Loan funds:

Request for PLUS (Parent) Loan form - The OSFA also requires the parent borrower to request the Federal Direct PLUS Loan each year by completing a Request for PLUS (Parent) Loan form. This form lets the OSFA know that the parent does indeed wish to borrow the loan for that year and the dollar amount they wish to borrow. Until this annual request form is processed, the OSFA will not proceed with the parent loan even if there is a valid MPN on file.

Federal Direct PLUS (Parent) Master Promissory Note - Parents who are first-time borrowers of the Federal Direct PLUS Loan must complete an electronic Master Promissory Note (MPN) to receive the funds. In most cases, the parent will be required to complete the MPN only once during their student(s)' years in college. If the parent borrower is ineligible because of an adverse credit history, the parent may obtain an endorser for the loan. If an endorser is required, the Office of Student Financial Aid (OSFA) must have a new MPN completed for each loan.

Lender	Federal Government
Interest Rate	Fixed at 7.9% for loans received after July 1, 2006
Interest Free in School	No
Credit Check	Yes
Loan Fee	4%
Interest Rebate	1.5%
Annual Maximum	Student cost of attendance minus other financial aid awarded
Cumulative Maximum	None
Grace Period	None
Loan Deferment	May be requested for loans disbursed after July 1, 2008 by calling the Direct Loan Servicing Center at 1-800-848-0979. Request must be made after the loan funds have disbursed.
Standard Repayment Period	Up to 10 years (additional repayment options beyond 10 years are available)
Minimum Payment	$50 per month

Additional information is available on the Federal Student Aid web site.