Description

These are unsubsidized loans for the parents of dependentSee Dependency Status. students.  The Direct PLUS is a federal non-need based program. PLUS loansParent Loans for Undergraduate Students (PLUS) are federal loans available to parents of dependent undergraduate students to help finance the child's education. Parents may borrow up to the full cost of their children's education less the amount of any other financial aid received. PLUS Loans may be used to pay the EFC. There is a minimal credit check required for the PLUS loan, so a good credit history is required. Students are advised to check with their local bank to see if they participate in the PLUS loan program. If the application for a PLUS loan is turned down, the student may be eligible to borrow additional money under the Unsubsidized Stafford Loan program. help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.  The lenderA lender is a financial institution that provides funds to the student or parent for an educational loan. is the U.S. Department of Education.

Amount

The annual limit cannot exceed UNT Cost of Attendance minus the other financial aidMoney provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). the student receives.

Eligibility

• The Free Application for Federal Student Aid (FAFSA)The FAFSA is used to apply for Pell Grants and all other aid. Complete your FAFSA via web at www.fafsa.gov . As the name suggests, no fee is charged to file a FAFSA. Follow the directions carefully to ensure proper and efficient processing. must be completed for Federal Direct PLUS eligibility to be determined.
• To apply, the parent borrowerThe person who receives a loan. must log onto StudentLoans.gov to submit the Direct Parent PLUS Request. Detailed instructions for completing the Direct Parent PLUS Request are available here.
• IMPORTANT NOTE:  A credit check is conducted by the U.S. Department of Education to establish eligibility.  You cannot have an adverse credit history.
• Parents and their dependentSee Dependency Status. child must be U.S. citizens or eligible noncitizens.
• Students must be enrolled at least half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. each semester.

Payment

Loan funds will not disburse (pay) until all requested documentation has been submitted, and your aid application is considered to be complete.

A note will be placed on the student's myUNT "To Do List" if additional steps are required before disbursement.

If the financial aid file is complete, disbursements can be made as early as ten days prior to the first day of a Fall or Spring fee payment (August/January) period. However, disbursements can also occur throughout an enrollment term upon completion of a file.

Interest Rate

It's a fixed rate of 7.9 percent. All interest rates and fees are valid only from July 1, 2011 through June 30, 2012.

Repayment

LoanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. repayment for parent borrowers begins 60 days after final disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses. of funds. Deferments are available for parents who wish to postpone repayment until after the dependentSee Dependency Status. student has graduated or withdrawn. Parent borrowers can request a deferment while submitting the online Direct Parent PLUS Request. Deferments can also be requested by contacting the U.S. Department of Education.

For more information regarding repayment, please visit Direct Loan Repayment Plans.

For information regarding deferment, please visit Direct Loan Deferment.

Repayment Length

Between 10 and 25 years to repay, depending on the amount owed and repayment plan selected.

Additional Information

• If the loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. is credit approved, parent borrowers must electronically sign a Federal Direct Loan Parent PLUS Master Promissory NoteTo take out a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). You can complete the MPN online at the StudentLoans.gov website. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). If you are applying for a Direct PLUS for the first time as a graduate/professional student, you'll need to complete and sign a PLUS MPN that is separate from the one that you use for your Direct Subsidized and Unsubsidized Loans..
• The up-front rebate reduces the fee borrowers pay at the point of loan origination. Beginning July 1, 2011, the U.S. Department of Education charges a 4% gross fee, and then gives borrowers an up-front rebate of 1.5%. This means that a net fee of 2.5% of the total amount borrowed each year will be charged. This fee is deducted from the loan by the Department of Education before the proceeds are credited to a student's account.  However, if the first 12 monthly payments are not made consecutively and on time, the U.S. Department of Education will add the 1.5% rebate back to your loan balance.
• IMPORTANT NOTE ABOUT THE UP-FRONT REBATE: The up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses. will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012.  For more information, you can review the Department of Education's electronic Announcement.
• Parent Direct PLUS Loan borrowers do not have to complete entrance counseling.
• Visit the Federal Student Aid site for more information.