Federal Direct Parent PLUS Loan (English)
Direct Parent PLUS loans are low-interest loans for parents of dependent students to help pay for the cost of a student's education after high school. In addition to the Federal Stafford Subsidized and Unsubsidized Loans available to student borrowers, parents of dependent undergraduate students may borrow additional funds through the Parent Loan for Undergraduate Students (PLUS) program, also known as Direct Parent PLUS loans. The lender is the U.S. Department of Education (the department) rather than a bank or other financial institution. Parents may borrow any amount up to the cost of education minus any other financial aid their son or daughter may receive. However, eligibility will be based upon a satisfactory credit check (see below for other eligibility requirements).
- Parent must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom they are borrowing.
- Student must be a dependent student who is enrolled at least half-time (six hours, per semester). Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional student, or a ward of the court.
- Parent cannot have an adverse credit history (a credit check will be conducted).
- In addition, both the Parent and the Student must be U.S. citizens or eligible non citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
Applying for the Direct Parent PLUS Loan
To apply for a Direct Parent PLUS Loan, the student, must complete the "Additional Financial Aid Request Form" form. If a Direct Parent Plus Loan is awarded, the student will receive an award letter that outlines the steps the parents must take to complete the Master Promissory Note for the Direct Parent PLUS loan.
Accepting a Direct Parent PLUS Loan
The following are the steps required to accept a Direct Parent PLUS Loan:
- Student must accept loan(s) via ASSIST at http://assist.panam.edu/
- Parent must complete the Parent PLUS Authorization Form available at the Financial Aid Office
- If the Parent is approved for a PLUS loan based on credit, the Parent must complete an Electronic Master Promissory Note at www.studentloans.gov. The Parent will need the Department of Education issued FAFSA PIN # (www.pin.ed.gov) in order to complete and electronically sign an eMPN under the Direct Loan PLUS Program. UTPA will receive electronic notification when a borrower completes an eMPN.
Once it has been confirmed that parent's credit check has been successfully approved and parent has completed the PLUS Loan Master Promissory Note, UTPA will disburse loan money by crediting it to the student's school account, but also may give some of it directly to the Parent. In some cases, with the Parent's permission, the school may disburse some of the Direct Parent PLUS loan funds directly to the student. The Loan must be disbursed in two equal amounts either during the Fall and Spring semesters or at the beginning of the term and at the term's calendar midpoint if the student's loan period is only one term.
Interest Rates and Fees
The interest rate for Direct Parent PLUS Loans is a fixed rate of 7.9%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of the first loan disbursement.
In addition to interest, the borrower may pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that he/she receives. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before disbursement of any loan money, so the loan amount disbursed will be less than the amount that has to be repaid.
Repayment of a Direct PLUS Loan begins 60 days after the full amount of the loan for a school year or loan term has been disbursed. This means parents must generally begin repayment while student is still in school. However, for Direct Parent PLUS Loans with a first disbursement date that is on or after July 1, 2008, parents may request that repayment be delayed until 6 months after student graduates or is no longer enrolled at least half-time. More information about postponing repayment is available by contacting the Direct Loan Servicing Center at 1-800-848-0979 or visiting Direct Loans on the Web at www.direct.ed.gov
Prestamo Federal PLUS (Español)