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Direct PLUS Loans

WHAT IS A DIRECT PLUS LOAN?

A Direct PLUS Loan is a Parent Loan for Undergraduate Students. Funds for these loans come from the federal government for parents of dependent undergraduates without an adverse credit history. Students must be enrolled at least half-time and in good academic standing. These loans are not based upon determination of financial need. The parent applies for this loan and is responsible for repayment.

Graduate students may borrow a Direct Graduate Plus Loan from the federal government. They must exhaust their Direct Subsidized and Direct Unsubsidized Loan eligibility before they are eligible to borrow a Direct Graduate Plus Loan. Graduate Students must not have an adverse credit history and must be enrolled at least half-time, in good academic standing. These loans are not based upon determination of financial need.

HOW MUCH CAN I BORROW?

At least $200, but not to exceed the student’s estimated cost of attendance minus the student’s estimated financial assistance for the academic period.

WHAT ARE THE INTEREST RATES?

2020-21 Direct Loan Interest Rates and Fees
(for loans with a first disbursement date on or after July 1, 2020)

DIRECT PLUS LOAN PROGRAMINTEREST RATEOrigination FEE*INTEREST CAP
Federal Direct PLUS Loan (for Dependent Students only)5.30%4.228%10.5%
Federal Direct Grad PLUS Loan  (for Graduate Students only)5.30%4.228%10.5%

WHEN ARE THE PAYMENTS DUE?

Payments are due monthly and begin 60 days after the disbursement of the first loan funds. Parents and graduate students may apply to the Department of Education for a deferment of payment during the enrollment period; however interest will continue to accrue during the deferment period. The number of years allowed to pay back this loan is 10 years; however students and parents may apply for a consolidation or an extended repayment plan.

HOW DO I APPLY?

  • All students must fill out a FAFSA.
  • In accordance with federal regulations, Direct PLUS loan borrowers must “Request A PLUS” on the web at https://studentaid.gov/. No loans can be credited to a student’s account until The PLUS loan has been approved. 
  • If the PLUS credit application is “DENIED” you are finished with the process. 
  • If the PLUS credit application is “APPROVED,” you will then “Complete MPN” and choose the “Parent PLUS” 
  • The Department of Education will transmit your funds electronically to Caldwell’s business office, who will then credit the funds to your account. If you have a credit on your account after receiving loan funds, and are not on any payment plan, the business office will issue a refund. 

The above two step process must be completed in order to receive the Parent PLUS Loan. PLEASE CLICK BELOW to visit the https://studentaid.gov/ website. When completing this PLUS process, make sure the Parent is signing in when doing the application.