Please note that you cannot only submit the PLUS Loan Request Form (step 3 below) and receive a Federal Direct Parent PLUS Loan. The loan must be approved (step 1) and a Master Promissory Note completed (step 2).
Parents that wish to complete a PLUS Loan for the 2019-20 academic year will need to complete three main steps:
- Apply for a PLUS Loan (All Borrowers) https://studentloans.gov
- Complete Loan Agreement/Master Promissory Note (MPN) for a PLUS Loan (First-time Borrowers) https://studentloans.gov
- Complete and submit the PLUS Loan Request Form (LRF) (All Borrowers)
Federal PLUS Loan Program for the 2019 -20 Academic Year
Federal Direct 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 Direct Parent PLUS Loan allows eligible parents to borrow up to 100 percent 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
- The interest rate for the Federal Direct Parent PLUS Loan program for loans disbursed on or after July 1, 2019 and before July 1, 2020 is 7.079% fixed. Interest rates are subject to change July 1 of each year.
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 Federal Direct Parent 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.
For loans first disbursed after September 30, 2018 and prior to October 1, 2019 there is an origination fee of 4.248 percent of the loan amount Therefore, 4.248 percent 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 Term and the second disbursement at the beginning of Winter/Spring Term. For single-term loans, the disbursement will be paid at the beginning of the term.
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 borrower 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 and/or a book voucher; the borrower should contact the Office of Financial Aid to use any credit balance to return loan funds to the federal government.
Your PLUS Loan Information
National Student Loan Database System (NSLDS) - View your Federal Direct Parent PLUS Loan borrowing history in the federal loan database.
Please note that you cannot only submit this form and receive a Federal Direct Parent PLUS Loan. The loan must be approved and a Master Promissory Note completed.