What is the PLUS Loan?
The PLUS Loan (Parent Loans for Undergraduate Students) is designed for parents who wish to use an educational loan to cover all or a portion of their student’s college expenses. The PLUS Loan program is a federal program that offers parents a low interest loan with repayments beginning while the student is in school. This loan is in the parent’s name and repayment must be made by the parent.
The Federal PLUS loan (Parent Loan for Undergraduate Students) is a loan to the parent of a dependant undergraduate student for educational expenses in the academic year. The Federal PLUS Loan is part of FFEL (Federal Family Education Loan) Program, lending institutions participating in the program loan funds to the parent borrower. Before the Financial Aid Office can process your request for a PLUS loan, the student must have a valid Free Application of Federal Student Aid (FAFSA) on file with the University of Wisconsin-Stout for the appropriate award year, and have responded to all requests for supplemental data (such as verification documents). If you have not filed a FAFSA, the application is available online at: http://www.fafsa.ed.gov. Need more information? Click here for helpful Q & A about the Federal PLUS Program. How much do we need? Click here for help in calculating the amount of your PLUS loan.
The PLUS loan enables you to borrow to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half time. It is available through the Federal Direct Loan Program. Who receives the PLUS loan funds? Your PLUS loan funds will be delivered directly to Ball State University. One-half of the net loan proceeds will be applied to the student’s first semester charges, while the second half will be applied to the second semester charges. For a one semester only PLUS loan, there will be one disbursement. If there are excess funds remaining after each disbursement, a refund check will be sent to the student or parent (depending upon the refund option you select). What is the interest rate? The interest rate is fixed at 7.9%. Is there a charge for a PLUS loan? The Federal Direct Loan Program charges a 4% loan fee (minus a 1.5% rebate). As a result, any PLUS loan funds applied to the student account will reflect a 2.5% reduction. When do I begin repaying
What is Work-Study? If my son or daughter was not awarded Work-Study, can he or she still work on campus? What is Parent/Guest Access? Q: What are the steps involved in receiving financial aid at the University of Minnesota? A: The following five steps take you through the financial aid process from application to payment. Our students can use the self-service link, “Financial Aid Status,” to track where they are in the process. This and other self-service options are found on the One Stop Student Services home page at onestop.umn.edu. 1. Application Review Once we receive a student’s Free Application for Federal Student Aid (FAFSA) from the federal processor, we review the application for completeness and accuracy. If additional documentation is needed or the student was selected for a detailed file review called verification, we will send a documentation request to the student’s University e-mail account. All requested documents must be submitted before financial aid will be awarded.
Related Questions
- Can I use my financial aid (loans and scholarships) to help pay for the exchange? What if the exchange costs more than what I normally pay to go to UTC?
- If a student did not qualify for a Qatar Foundation financial aid loan, can he/she get a bank loan to pay his/her tuition costs?
- What is the PLUS Loan?
