Parent PLUS FAQ

What are the Federal PLUS Loan terms?
Who is eligible?
How do I obtain a Federal PLUS loan?
When will the PLUS loan disburse?
When will repayment begin?
What if I want to reduce or cancel my PLUS loan?
What if I want to apply for additional PLUS loan funds?
What if my credit is denied?

What are the Federal PLUS Loan terms?*

• Maximum loan amount = cost of education minus financial aid received.
• Interest rate is 6.28% fixed.
• Loan fee = 4.228% of principal.
• Repayment of principle and interest begins 60 days after the loan is fully disbursed 
• Standard repayment period is ten years.

Who is eligible?

• A parent or stepparent of a child going to school at least half-time.
• The parent borrower must be a U.S. Citizen or Permanent Resident.
• The parent borrower must pass a credit check performed by the lender.

How do I obtain a Federal PLUS loan?

1. Complete a FAFSA at studentaid.gov
2. Complete the Federal Direct Parent PLUS loan application
3. New borrowers must complete a Master Promissory Note (MPN).  Sign in using FSA ID (not your child’s). If you do not have an FSA ID, you may go to studentaid.gov

When will the PLUS loan disburse?

In accordance with federal loan regulations and CSB/SJU’s disbursement schedule, the loan will be applied to the student’s account once all requirements are met. If enrolled in both fall and spring semesters, one-half of the loan will be disbursed at the beginning of the fall semester and the remaining half will be disbursed at the beginning of spring semester.  Generally, loan proceeds arrive a few days before the beginning of each semester.

When will repayment begin?

Repayment will begin 60 days after disbursement of the full amount borrowed for an academic year. Interest accrues as soon as the first disbursement is made. The parent borrower repays both principal and interest while their student is in school. The repayment term will be 10 to 30 years depending upon the repayment plan selected. Parents have the option to defer payments for PLUS loans, provided the designated student is enrolled at least half-time each semester. Parents must contact their Direct Loan Servicer after the loan has been disbursed to request a deferment.  To see who is servicing your loan go to studentaid.gov

What if I want to reduce or cancel my PLUS loan?

If you wish to reduce or cancel your Federal Direct Parent PLUS loan, it is important that you notify the Financial Aid Office in writing as soon as possible. You may cancel all or a portion of your loan (after funds have been credited to the student’s account) by notifying the Financial Aid Office in writing within 30 days after the date of your loan disbursement notice.  Loan funds will be returned to the U.S. Department of Education.

What if I want to apply for additional PLUS loan funds?

You may apply for additional PLUS loan funds by completing another application at studentaid.gov. The total amount of a PLUS loan may not exceed the cost of attendance minus all other financial aid. Please note that your credit history may be reviewed again to determine your eligibility.  A new Master Promissory Note is not required for additional loan amounts.

What if my credit is denied?

If your application is denied due to credit, you will receive notification from the Direct Loan Servicer. You may choose from the following options:

  • You may try to have a credit status override completed by the servicer. Please contact the student loan support center at 1-800-557-7394
  • You may have a third-party endorser co-sign the PLUS loan application for you. Any PLUS loans with an endorser added will require a new and separate MPN be completed by the parent borrower. Contact the student loan support center at 1-800-557-7394 for questions regarding this option.
  • You may choose not to pursue any of the options listed above, and your student may borrow additional funds for the current academic year through the Federal Direct Unsubsidized Loan Program. Please have your student contact the financial aid office to explore this option.
*Origination fees change annually on October 1st. For loans originated prior to 10/1/20 loan fee is 4.236%