Parents that wish to complete a PLUS Loan for the 2014-15 academic year will need to complete three main steps:
Federal Parent Loans for Undergraduate Students, also known as PLUS loans, are low-interest education loans that allow parents to fund the cost of their child's education. A federal PLUS Loan allows eligible parents to borrow up to 100% of the estimated cost of your student's college attendance, including student tuition, room and board, student books, transportation and additional expenses, minus any other financial assistance awarded to the student.
To be eligible, you must:
Eligibility also depends on the student. The student must:
The interest rate for the Direct PLUS Loan program is 7.21%.
Repayment begins 60 days after the loan is fully disbursed. Parent borrowers are required to make monthly payments and typically have 10 years to repay the loan. There are no prepayment penalties on a PLUS Loan. You may contact the Direct Loan Servicer to request to defer payments until six months after the student graduates or drops below half-time enrollment.
There is an origination fee of 4.288% of the loan amount. Therefore, 4.288% is deducted from each loan disbursement.
Disbursement of the Loan
For academic year loans, the first disbursement will be paid at the beginning of fall semester and the second disbursement at the beginning of winter semester. For semester loans, the disbursement will be paid at the beginning of the semester.
Loan proceeds are provided directly from the federal government to Hanover College on behalf of the borrower. Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. The Office of Financial Aid will notify the student when the disbursement is received. If the loan proceeds create a credit balance the borrower will need to contact the Business Office to receive a refund, to receive a book voucher or to instruct them to return loan funds to the lender.
National Student Loan Database System (NSLDS) - View your Federal PLUS Loan borrowing history in the federal loan database.