A Federal Direct Parent Loan for Undergraduate Students (PLUS) loan is an unsubsidized loan available to the parents of dependent undergraduate students. If the parent borrower is denied a PLUS loan, the student may be eligible to borrow additional unsubsidized loan funds.
The parent may only borrow up to the cost of attendance minus any other financial aid awarded.
For the 2008-2009 school year, the interest rate is 7.9%. An origination fee of up to 4% is charged.
Applying for a Direct PLUS Loan is a two-step process. The parent completes a Federal Direct PLUS Loan Application for Parents. After the application is processed along with a credit check, the parent will be asked to complete the Direct PLUS Master Promissory Note (MPN). Do not complete the MPN until you receive approval from the Office of Student Financial Aid.
Parents must complete the Federal Direct PLUS Loan Application for Parents. The information obtained on the application will allow the Office of Student Financial Aid to complete a credit check. Please submit the application along with a copy of your social security card and driver’s license to the Office of Student Financial Aid.
After the Federal Direct PLUS Loan Application for Parents has been received and the PLUS Loan approved, the borrower will be asked to complete the Federal Direct PLUS Loan Master Promissory Note. UHCL utilizes the multi-year MPN. The MPN acts as a contract between the borrower and the U.S. Department of Education. By signing the MPN, a borrower promises to repay the amount loaned and agrees to other important terms of the loan. The MPN must be completed in order for the loan funds to be disbursed to the student’s account. The MPN may be signed online at https://dlenote.ed.gov/empn/completenew_plus.jsp.
The disbursement will arrive electronically, and the loan will be applied to the student's account. Tuition, fees and/or other balances will be deducted. Any disbursement in excess of the amount owed to UHCL is mailed to the home of the parent borrower unless the borrower authorizes a refund to the student. The parent borrower can authorize a refund to the student using the Federal Direct Parent PLUS Borrower Refund Request Form available with the Federal Direct PLUS Loan Application for Parents.
Date Updated: 05-NOV-2008Savings Calculator
Each of our preferred lenders offer repayment incentives to borrowers. Please keep in mind when viewing the possible savings that all or part of the incentives are granted to borrowers depending upon their personal repayment.
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