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Federal Direct Parent Loan UG

The federal PLUS loan is for parents of dependent students who are enrolled at least half-time. Qualifying for this non-need-based loan requires a credit check. The annual limit is the cost of attendance minus any estimated financial aid awards and resources. The interest rate is fixed at 8.5 percent. A 2.5% loan fee is applied to disbursements. Repayment begins within 60 days of the loan being disbursed, with a minimum monthly payment of $50 (possibly more, depending upon the amount borrowed), and the loan must be repaid within 10 years. As with all other federal aid, a FAFSA must be filed and eligibility for other aid determined before a PLUS loan can be processed.

To Apply for the PLUS Loan

A comparison of PLUS loans is available on the Direct Loan PLUS Request Form. If Direct Loan is chosen, the Direct Loan PLUS promissory note is completed online at dlenote.ed.gov the parent must have a PIN (Personal Identifier Number) to complete the promissory note process.  Parents who choose a private lender submit a PLUS application online. The lender forwards the request to the Cal State San Marcos Financial Aid and Scholarship Office. A parent promissory note is completed through the lender. The PLUS Loan is disbursed in two payments during the student's enrollment period. If the student has outstanding University fees, the disbursement pays the fees first. The difference is sent by check to the parent. The parent borrower may have the PLUS disbursement paid to the student by indicating so on the paper Direct Loan PLUS Request Form.