Financial Aid

As a parent how can I apply for a Parent Loan for Undergraduate Dependent Students (PLUS)?

What is a PLUS Loan?

  • PLUS Loans are federal loans for parents of dependent students available to pay education expenses.
  • The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program. LCSC participates in this program.
  • The PLUS Loan is repaid by the parent (borrower).

Am I eligible for a Direct PLUS Loan?

  • Your student must be enrolled at least half-time (6 or more credits) at an eligible school.
  • Your student must be making Satisfactory Academic Progress.
  • You must:
    • Be the parent (biological, adoptive, or in some cases, stepparent).
    • Not have adverse credit history.
    • Meet the general eligibility requirements for federal student aid including citizenship.

How do I apply for a Direct PLUS Loan?

  • You will need to apply for an FSA ID at https://studentaid.ed.gov/npas/index.htm.
  • Your student must complete the Free Application for Federal Student Aid (FAFSA) at https://fafsa.ed.gov.
  • Complete an application at https://studentloans.gov using your FSA ID and password.
  • Your will complete the application, including you and your student's information.
  • A credit check is performed by the Department of Education.
  • You will receive the decision on whether you were approved or denied.

I have been approved, what are my next steps?

  • You will be required to sign a Loan Agreement (MPN). You complete this electronically using your FSA ID at https://studentloans.gov.
  • By completing the MPN you are agreeing to the terms of the loan.

How will I receive my loan?

  • The funds are disbursed directly to the school.
  • LCSC will apply the Direct PLUS Loan funds to your student's account to pay for tuition, fees, room and board, and other school charges.
  • Any residual loan funds will be disbursed to you, the parent.
  • You can have the excess funds disbursed to your student by contacting Student Accounts at (208) 792-2202 or email at studentaccounts@lcsc.edu.

How much can I borrow?

  • PLUS Loan eligibility is determined by Cost of Attendance minus all other awards.
  • You select the amount to borrow within the maximum for which you are eligible.
  • The amount borrowed cannot exceed the Cost of Attendance.
  • Contact the Financial Aid Office for assistance.

What is the interest rate?

  • The interest rate is 7% for loans disbursed on or after July 1, 2017 and before July 1, 2018. This is fixed for the life of the loan.
  • The interest rate changes each July 1 for new loans made during the next academic year.

Can I still receive a Direct PLUS Loan if I have an adverse credit history?

  • You may still receive a Direct PLUS Loan via one of these two options:
    1. You may obtain an endorser who does not have adverse credit history. As a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
    2. You may appeal extenuating circumstances relating to your adverse credit history.
  • If you successfully complete either option 1 or option 2 you will complete required credit counseling for PLUS Loan borrowers at https://studentloans.gov.
  • You will also need to complete the Loan Agreement (MPN).

What happens if I am denied?

  • You can appeal the decision to the Department of Education.
  • The student may be eligible for additional unsubsidized loans.
  • The student should contact LCSC's Financial Aid Office for more information.

In addition to interest, are there other fees for this loan?

  • There is an orgination fee on all Direct PLUS Loans.
  • The current origination fee is 4.276% for loans first disbursed on or after October 1, 2016, and before October 1, 2017.
  • 4.264% is the origination fee for loans first disbursed on or after October 1, 2017, and before October 1, 2018.

 

As a parent borrower, can I transfer my loan to my child?

PLUS Loans are non-transferrable. You, the parent, are responsible for repayment.

PLUS Loans can be consolidated with other student loans you may have previously borrowered, but not your student's loans.

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