Federal Direct Parent PLUS Loans
Parents of a dependent student may apply for a Federal Direct Parent PLUS loan to pay for the student’s educational expenses. Eligibility for Federal PLUS loans is not based on financial need. Parents may borrow up to the cost of education minus other financial aid the student receives.
Other characteristics of the program:
- borrower must have a good credit history
- interest rate is fixed at 7.08% for 2019-2020
- origination fee of 4.248% deducted from each disbursement made after October 1st, 2018
- maximum repayment term of 10 years, minimum payment is $50 per month
- payment of principal can be deferred, but borrower is always responsible for interest payments.
Academic Year 2019-2020
Parents who wish to apply for a Federal Direct Parent PLUS loan must have their student/s complete a 2019-2020 Free Application for Federal Student Aid (FAFSA) and then the parent completes the 2019-2020 Parent PLUS loan application by visiting www.studentloans.gov. The Federal Direct Parent PLUS loan Application and Master Promissory Note (MPN) are required to be completed prior to certifying and disbursing the requested loan.
Direct PLUS Loan Cancellation: If you receive a Direct PLUS Loan, your student’s account will be credited with your loan proceeds. The Finances Section of your MaineStreet Student Center will show the transaction(s) as soon as it occurs. You may cancel all or a portion of your loan if you inform us within 14 days after the date that your loan proceeds are credited to your account, or by the first day of the payment period (first day of the semester), whichever is later. To cancel your loan, you must submit a signed written request to the Merrill Center.
For more information about the Federal Direct PLUS Loan program, consult the Funding Education Beyond High School published yearly by the U.S. Department of Education. In addition you may find PLUS Loan information pertinent to UMF in the following brochure: Parent PLUS Loan Brochure 2019-2020