PLUS Loan - General Information
Step by Step Loan Instructions - First Time Borrowers (PDF) | Returning Students (PDF)
PLUS Loan Program
Lender List 2009-2010 - You have the option to use a lender from this list or use any other lender of your choosing. These lenders meet or exceed criteria that are valuable to our students and college and were chosen via an annual evaluation process where they were scored based on a model provided by the National Association of Financial Aid Administrators (NASFAA). You are not required to use one of these lenders - your lender is your choice.
Online Application & Loan request form
National Student Loan Database System (NSLDS) - View your Federal PLUS Loan borrowing history in the federal loan database.
Federal PLUS Loan Program for the 2009-2010 Academic Year
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.
Eligibility for a PLUS Loan
To be eligible, you must:
- Be a natural, step or adoptive parent of a dependent student
- Be a U.S. citizen or eligible non-citizen and provide a valid Social Security number
- Pass a credit check
Eligibility also depends on the student. The student must:
- Be less than 24 years of age
- Have no dependents
- Be enrolled at least half-time in a degree seeking program
Interest Rate
Beginning with loans disbursed on or after July 1, 2006, the interest rate on the Federal PLUS Loan will be fixed at 8.50%. For loans disbursed prior to July 1, 2006, the interest rate is variable and capped at 9%. All lenders offer the same rate for the PLUS Loan, although some may offer interest rate reductions or credits.
Payment Terms
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. Some lenders allow parents to defer payment on the PLUS Loan while the student is enrolled in school by capitalizing the interest. Interest is capitalized no more frequently than quarterly.
Fees
There may be a combined fee of up to 4.0% of the loan amount, comprised of a 3.0% origination fee and a 1% federal default fee. These fees are deducted from each loan disbursement so that you are not required to pay any up-front money to obtain the loan.
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.
- In most cases the funds will be disbursed to the school electronically (EFT). Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. The Business Office 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.
- Some disbursements may be made by co-payable check to the student and Hanover College. The student will be contacted by the Business Office to endorse the check before the student account can be credited.
