Federal Direct Parent PLUS Loan
Parent PLUS Loans
Parent PLUS Loans are available to the parents or stepparents of dependent undergraduate students. These credit-based loans are not determined by financial need and can go up to cost of attendance.
PLUS Loans are financed directly by the US government, so you do not need to choose a lender. Parents borrowing PLUS Loans must complete a PLUS application online.
The interest rate on Parent PLUS Loans disbursed between July 1, 2018, and June 30, 2019, is fixed at 7.60 percent. There is no annual limit to the amount that can be borrowed through the PLUS Loan program.
In general, parents may borrow up to the cost of attendance less any other financial aid received. Parent PLUS loans disbursed on or after October 1, 2018 have an initial origination fee of 4.248 percent of the principal amount of the loan. This fee will be deducted from each disbursement of each loan.
The standard repayment period under this program is 10 years. Interest is charged on Parent PLUS Loans beginning on the date of the first loan disbursement. Repayment of the principal and interest on a Parent PLUS Loan begins within 60 days after the loan is fully disbursed.
Parents may request an in-school forbearance from Direct Loan Borrower Services during which no payments, or interest-only payments, are required.
Interest on Parent PLUS Loans continues to be charged during periods of deferment or forbearance. You may either pay the interest as it accrues or you may allow the interest to be capitalized (added to your loan’s principal balance).
Capitalization increases the total loan amount that you must repay.
How to Apply for a Parent PLUS Loan
Federal Direct Parent PLUS Loans are available to the parents or stepparents of dependent undergraduate CCA students. Direct PLUS Loans are financed directly by the U.S. government, so you do not need to choose a lender.
Instructions listed here are intended for those parents who wish to borrow through the Federal Direct Parent PLUS Loan program on behalf of their children who are CCA students in 2018–19.
To Receive a Parent PLUS Loan
- Complete a 2018-19 FAFSA Application online.
- Complete the Parent PLUS loan online application.
- Complete a Parent PLUS Master Promissory Note (MPN). You can complete and sign the Parent PLUS Loan MPN online: https://studentloans.gov.
Select Complete Master Promissory Note option on menu.
The Parent PLUS MPN is usually a multiyear promissory note. The MPN is good for ten years unless you use an endorser (cosigner), in which case the MPN is good for that loan only.
You must complete and sign a Parent PLUS MPN to receive your loan funds which you can do so online.
The PLUS Loan amount requested online must match the amount requested on the student's award letter. Discrepant information could delay the processing of your PLUS loan.
- Return a signed copy of your student's financial aid award letter to CCA that includes the amount of the PLUS loan you intend to borrow.
It is possible to borrow a greater amount than what was indicated on your dependent student's financial aid award letter. You can borrow up to the total estimated cost of attending CCA less other financial aid. You can request a higher amount on the award letter. If you need assistance requesting a greater PLUS Loan amount, please contact us for more information
To Increase a paid Parent PLUS Loan
- To increase a Parent PLUS loan that has already begun paying out, please have the parent who was approved for the Parent PLUS loan send in an email to our office making this request. Please note, the maximum amount of the loan cannot exceed cost of attendance minus other financial aid offered.
- Repayment for Parent PLUS Loans begins 60 days after the loan is fully disbursed. Parents may request an in-school forbearance from Direct Loan Borrower Services during which no payments, or interest-only payments, are required. Such requests go directly to Direct Loan Servicing Center.
- Parent borrowers must be a citizen, permanent resident or other eligible non-citizen of the United States to be eligible for a Parent PLUS Loan.
- Only parents are allowed to apply for the Parent PLUS Loan; students cannot apply. The loan neither is transferable nor can it be consolidated into a loan in the student's name.
- This is a credit-based educational loan program. Creditworthiness is determined by the Department of Education. If you do not meet the federal credit requirements, you can still receive a loan provided you obtain an eligible endorser (cosigner).
- The Department of Education must review your credit (and your cosigner's credit, if applicable) each time you apply for a Parent PLUS Loan.