Direct PLUS Loan for Parents FAQ
*The following is Direct PLUS loan information beginning fall 2010.
Q. What is the Direct PLUS loan?
A. The Direct PLUS loan is a federal loan with a fixed interest rate of 6.41% and a 4.288% origination fee. (For example: a loan of $10,000 will disburse to the student’s account as $9,571). Repayment of Direct PLUS loans begins 60 days after the loan is fully disbursed. Other repayment options include deferment on principal and interest or interest-only payments while the student is enrolled as at least half-time status. Repayment options may be selected at the time of application.
Q. What are the eligibility requirements?
A. Borrower eligibility for the Direct PLUS Loan is ultimately determined by FAFSA information, La Salle University of Cost of Attendance, the application and credit approval process, and any other required documentation. The student must also meet Federal Student Aid (FSA) general eligibility requirements.
In order to be eligible for a Direct PLUS Loan, the undergraduate student must be enrolled for a minimum of 6 credits per semester.
Q. How do I, as a parent, apply for the Direct PLUS Loan for my son or daughter?
A. In order to apply for a Direct PLUS loan, families will first need to complete the FAFSA and the student will need to complete the La Salle University Institutional Data Form (IDF). Parents of dependent undergraduate students can apply for the upcoming academic year at www.studentloans.gov after June 1st.
Q. How does an approval or denial affect my financial aid?
A. Direct PLUS loans are approved or denied based on the creditworthiness of borrower.
If the parent is approved for the Direct PLUS loan, he/she will need to sign the Direct PLUS loan Master Promissory Note (MPN) via www.studentloans.gov.
If the parent is not approved for a Direct PLUS loan, the student may then be eligible for additional Direct Unsubsidized loan funds. Notify Student Financial Services of the Direct PLUS loan denial and the amount of additional Direct Unsubsidized funds that you wish to borrow (freshmen and sophomores are eligible for up to an additional $4000/yr; while juniors and seniors are eligible for up to an additional $5000/yr).
Remember, all loans are certified for the full year – both fall and spring semesters. Loans are not processed for one term only.
Q. Will a Direct PLUS Loan Master Promissory Note (MPN) need to be completed?
A. Parents who are new to the Direct PLUS Loan Program, as well as those who have borrowed through the FFELP PLUS loan program, will need to sign a new MPN via www.studentloans.gov.
If you have previously borrowed a PLUS Loan at another Direct Lending institution for the current La Salle student, you will only need to complete the credit check process, as the MPN has already been completed for the previous loan at the previous institution.
*A Direct PLUS Loan MPN will need to be completed for each parent/student combination.
Q. Who can answer questions about my Direct Loan?
A. Any questions you may have regarding the application should be addressed to La Salle University Student Financial Services. You may e-mail firstname.lastname@example.org or call 215-951-1070.