Federal Parent PLUS Loan

Eligibility

In addition to the Federal Stafford Subsidized and Unsubsidized Loans available to students borrowers, credit-worthy natural or adoptive parents of dependent undergraduate students may borrow additional funds through the Parent Loan for Undergraduate Students (PLUS). The lender is a bank of the parent's choice. Parents may borrow any amount up to the cost of education minus any other financial aid their son or daughter may receive. Eligibility will be based upon a satisfactory credit check.

Applying for the PLUS Loan

To apply for a Parent PLUS Loan you, the student, must complete the "Additional Financail Aid Request Form" form. If the 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. The borrower, the parent, must complete and sign the PLUS Loan Master Promissory Note and return it to the Office of Student Financial Services.

Disbursement

The loan funds will be mailed from the lender to UTPA and may be picked up by the parents at the UTPA Payments and Collections Office, unless arrangements are made with Student Financial Services to have the check mailed to the parent's address.

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.

Changing your loan amounts

You may cancel all or portions of your loan(s) after the funds have been credited to your account by notifying us in writing within 30 days of disbursement.

Repayment Terms

The parent is responsible for repayment of this loan. Repayment begins 60 days after the loan is fully disbursed for the academic year. Parents will have from 10 to 30 years to repay depending upon the repayment plan chosen by the parent. Payments are made to the bank. Plus Loan borrowers may choose a repayment plan suited to their needs. Lenders can provide details.

Interest Rate amd Fees

Plus Loans disbursed on or after July 1, 2006 will have a fixed interest rate of 8.5%. Federal Law requires certain fees to be charged for each loan made, including an origination fee and a federal default fee. Fees charged to the borrower are deducted from the loan proceeds when the money is sent to the school.