Federal Parent PLUS Loans enable parents with good credit histories to borrow funds for the educational expenses of each child who is a dependent student. PLUS loan proceeds can be used to pay for eligible educational expenses which may include the following: tuition and fees, room and board, books and supplies, transportation, and other costs associated with attending a post-secondary institution.
How Do I Get Started?
- To apply for a PLUS Loan the parent will need to complete and return to the NTC Financial Aid Office a PARENT PLUS Loan Authorization Form.
- Parents will also need to complete a Master Promissory Note (MPN) for Parent PLUS Loans. The MPN is a legally-binding contract between the Department of Education and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid. Complete the Master Promissory Note (MPN) for Parent PLUS now.
- Complete the PLUS Counseling module at www.studentloans.gov
More information about the terms of the Direct PLUS Loan is included in the table below:
|Eligibility Criteria||Loan Terms||Additional Information/Requirements|
|• DIRECT PLUS LOAN
(for Parents of Dependent Undergraduates)
• Parent borrows on behalf of undergraduate student
• Student must be enrolled at least half-time in a degree program
• Borrower must be a U.S. citizen or eligible noncitizen
• Borrower cannot be 90 days or more delinquent on the repayment of any debt (180 days delinquent on mortgage loan or medical bill payments) or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years.
• 7.21% variable-fixed interest rate (effective July 1, 2014; 6.84% effective July 1, 2015. Rates change each July 1.)
• 4.292% origination fee (for loans originated Oct. 1, 2014. For loans originated Oct. 1, 2015, the fee will be 4.272%. Fees are scheduled to change each fall due to federal budget sequestration.)
• Parents may borrow up to the student’s Cost of Attendance minus other financial assistance
• Interest begins accruing immediately; may be paid periodically or capitalized
• Repayment of principal and interest begins 60 days after loan is disbursed. (Parents may qualify for deferment while student is enrolled. Go to NSLDS.ed.gov, log in to find your servicer and contact them.)
• PLUS Loans may be consolidated with other Direct Loans
• Students must complete the Free Application for Federal Student Aid (FAFSA).
• Borrowers accepting Direct Loan funds for the first time must complete an online Master Promissory Note.
• More information from the U.S. Department of Education
- Financial Aid