The Parent Plus Loan gives parents the opportunity to pay for their child’s education by taking out a loan to cover their child’s additional educational expenses. If the child is a dependant undergraduate student enrolled at least half-time in an eligible school and program then the parent qualifies to borrow a Parent Plus Loan. These loans are available through the FFEL and Direct Loan Programs. If you are considering a Direct Parent Plus Loan, you must complete the FAFSA application and a Parent Plus Loan application with promissory note. The Parent Plus Loan application is a supplemental form that must be completed after you receive the SAR (Student Aid Report). This report shows if you qualify to borrow a parent plus loan. If you do qualify for a parent plus loan, the application can be found through your child’s financial aid office or school website. Information you will need in order to complete the Direct Parent Plus Loan Application: 1. Relationship to Student – Father, Mother, Stepmother, Stepfather 2. Total Loan Amount – This is the amount found in the Award Notification that you should have received from your child’s school. 3. Parent’s 4. Parent’s Social Security Number 5. Parent’s Date of Birth 6. Parent’s Name 7. Parent’s Permanent Address 8. Parent’s Telephone Number 9. Parent’s U.S. Citizenship Status 10. Parent’s Signature: This allows the U.S. Department of Education and its agent to obtain a credit report that will be used to determine if you are worthy to make a Direct Plus Loan. Parents must complete and submit a Parent Plus Loan application through the child’s school, lender, or state guaranty agency if they are considering a FFEL Parent Plus Loan. After the school completes their portion of the application, it must be sent to the lender for evaluation. The difference between a FFEL and Direct Parent Plus Loan is that the FFEL program is administered through private student loan lenders, while the Direct program is administered through the Federal Department of Education. Also, please keep in mind that the FFEL program will charge a higher interest rate then the Direct Program, since loans are originated through private financial agencies.
Once the application is complete, you must postmark the application before or on the parent plus loan application deadline. The deadline to submit the parent plus loan application is in the beginning of May if your child plans to attend school for both semesters, beginning of December for Fall only, and beginning of May for Spring Only. These are estimated deadlines, so please consult your school’s financial aid office.
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