A Federal Direct Loan for Undergraduate Students (PLUS) is a cost-effective solution for parents to help keep their student's debt burden as manageable as possible. Parents of dependent children may apply for these low-interest loans. Funds fro PLUS can only be used for expenses such a tuition, room and board, books and supplies and personal expenses related to the student's college education.
The PLUS loan may be borrowed up to the cost of attendance (COA) minus any other financial aid the student receives each year. The student and parent must meet eligibility requirements, including US citizenship, and a credit check.
To initiate the PLUS loan application, complete the CIA PLUS Application and submit it to CIA's Office of Financial Aid. Data from this application will be transmitted electronically to the US Department of Education where a credit check and other eligibility information will be evaluated.
If the PLUS is approved, and the parent borrower is a first-time borrower for their student, the parent borrower must complete the Parent PLUS Master Promissory Note (MPN). The Federal PLUS MPN is designed for a parent borrower to use as a multi-year note for one dependent student. Under the PLUS MPN multi-year process, a parent borrower will, in most cases, sign a PLUS MPN only once, at the time the parent first borrows for that dependent student. The parent may obtain additional loans for that same dependent student for up to 10 years after the date the parent first signed the PLUS MPN. If a different parent chooses to borrow a PLUS Loan for the same dependent student, a separte PLUS MPN must be completed. Likewise, a separate PLUS MPN must be completed for each dependent student.
If the parent uses an endorser to qualify for a PLUS, they must submit a new PLUS MPN and entrance counseling each academic year.
Once the Office of Financial Aid receives notification from the US Department of Education that your PLUS has been approved, it will be added to your student’s CIA Financial Aid award, and the student will be emailed to accept the PLUS loan online at Net Partner.
Payment and terms
There is no grace period for a Federal Direct PLUS Loan. Typically, the repayment begins 60 days after the last disbursement of the loan for a specific loan period. However, if you are a parent PLUS borrower who is also a student, you can defer repayment while you are enrolled in school at least half-time and for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after you graduate or drop below half-time enrollment.
If you are a parent PLUS borrower and the Federal Direct PLUS loan was first disbursed on or after July 1, 2008, the repayment of the Federal Direct PLUS can be deferred while the student is enrolled at least half time and for an additional 6 months after the student graduates or drops below half-time enrollment (six credit hours at CIA). Parent PLUS borrowers must separately request a deferment for each PLUS loan. Deferments can be obtained through your Federal PLUS Loan servicer.
Generally, you select from 10 to 25 years to repay Federal PLUS Loan, depending on the repayment plan you choose.
Your loan servicer will notify you of the date your first payment is due. If you do not choose a repayment plan, your loan servicer will place you on the standard plan with fixed monthly payment for up to 10 years. Other options are available for borrowers who need more time to repay or who need to make lower payments at the beginning of the repayment period of the PLUS loan.
The Parent PLUS borrower can change repayment plans at any time by contacting your Federal Loan Servicer.
The interest rate for Federal Parent PLUS Loans for the 2019-20 academic year is fixed at 7.08%, provided the loan is disbursed no later than June 30, 2020. Interest rates for loans after June 30, 2020 have not yet been determined. There is a 4.236% origination fee deducted from the proceeds of the loan that has a first disbursement prior to October 1, 2020. The origination fee for loans that have a first disbursement on or after October 1, 2020 and prior to October 1, 2021 have not yet been determined.
If a PLUS loan is not approved, an additional $4,000 for freshman and sophomores and $5,000 for juniors and seniors unsubsidized Federal direct loan fund may be available to the student.
February 25, 2022
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