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Federal Direct PLUS Loan
Step 1: Understanding the Federal Direct Parent Loan for Undergraduate Students
A Federal Direct Parent PLUS Loan may be an option for families who need to borrow more than the Federal Direct Loan limits. This loan has a fixed rate of 7.21% with a 4.288% fee before October 1, 2014 and 4.292% fee on or after October 1, 2014 which will be deducted from the proceeds that are sent to the school.
Eligibility is limited to the cost of attendance minus any other financial aid the student is receiving. Because the funding for Federal Direct PLUS loans come straight from the US Department of Education, students and parents do not have to find a lender to borrow through this program.
Denial of an application for the Federal Direct PLUS loan may make the student eligible to borrow an additional amount ($4,000 or $5,000) of Federal Unsubsidized Direct Loan.
Reduction or cancellation of the Federal Direct PLUS before or after disbursement can be requested by the parent borrower. Please contact the financial aid office.
Step 2: Obtaining Your Loan and Requesting Additional Loan Amounts
To apply for a Federal Direct Parent PLUS Loan, please complete the 2014-2015 Federal Direct Parent PLUS Application Credit Authorization and send this form to the financial aid office. Then complete a Master Promissory Note (MPN) ONLY IF YOU HAVE NOT COMPLETED A FEDERAL DIRECT PLUS MPN FOR THIS STUDENT BEFORE. You will need your Federal Student Aid PIN to sign your MPN electronically. After you sign your PLUS MPN, electronic notification will be sent to Bethany Lutheran College.