The Federal Direct Parent Loan for Undergraduate Students (PLUS) is an unsubsidized loan for parents of dependent students. The PLUS loan can be used to meet the Expected Family Contribution (EFC). Parents may borrow any amount up to the Cost of Attendance (COA), minus other financial aid. You will be offered your full parent loan eligibility on the award letter. Your student has the opportunity to accept, decline, or reduce the PLUS loan at www.cwu.edu > MyCWU > Sign In > Financial Toolbox > Accept/Decline Awards. To reduce a loan prior to acceptance, click "Accept" and then change the amount in the popup box.
Parent borrowers apply for the Parent PLUS Loan online at www.studentloans.gov by signing into the website with their FAFSA PIN. Once they have signed in they will select "Request a PLUS Loan" from the menu and then select Parent PLUS as the type of loan. During this application process the parent borrower will be able to request in-school deferment of payments and will immediately know the results of the credit check. If denied, they have several options available, including appealing the credit decision, applying with an endorser (co-signer), having the school offer the student an additional unsubsidized student loan, or not taking action.
The same parent who is approved for a loan must also complete the Parent PLUS Master Promissory Note. The Parent PLUS MPN is for one parent and one student and is good for up to 10 years. The PLUS loan is available to either biological or adoptive parent (even if the parent was not included on the FAFSA), or a step-parent whose financial information is included on the FAFSA. For instructions on how to successfully complete the Parent PLUS MPN click here.
The PLUS loan is offered with a fixed interest rate, set each year by the US legislature and announced by the federal Department of Education. The origination fee is 4.288%.
Unless you've requested a deferment, repayment on a PLUS loan begins sixty days (60) after the final disbursed of the academic year.
For PLUS loans disbursed after July 1, 2008, the parent has the option to request a repayment deferment until 6 months after the student graduates or leaves school. The deferment may be requested at the time of application.