Federal Parent (PLUS) Loan
What is a Federal Parent (PLUS) Loan?
A low interest federal loan for all biological and adoptive parents who are U.S. Citizens or permanent residents. Non-custodial parents are encouraged to apply. To be eligible for this loan, the student must also be a U.S. Citizen or permanent resident and must be enrolled at least half-time and meeting Satisfactory Academic Progress. In order to process the Federal PLUS loan, the student must complete the
Free Application for Federal Student Aid (FAFSA).
How much am I eligible to apply for?
Parents may borrow up to LMU's cost of attendance minus any other financial aid your student has received.
What is the interest rate?
The interest rate is a fixed rate of 8.5%.
Will my credit report be reviewed?
Yes, you must be creditworthy to receive the Federal PLUS loan. But don't worry, most lenders provide a second review of your credit in the event you are denied the Federal PLUS loan the first time. Often parents that were once denied for the Federal PLUS loan will be approved with the second review process (See below for more detail).
When do I pay the loan back? Repayment on this loan will begin 60 days after the final disbursement. You have 10 years to pay the loan back. There are various repayment options, and even the opportunity to pay interest only payments.
How will the loan funds be sent to the LMU?
Provided that the Federal PLUS loan is approved and the PLUS Master Promissory note (MPN) is completed and received by the lender, the loan will be sent in two disbursements; First disbursement in the fall semester and the second disbursement in the spring. These funds arrive via Electronic Fund Transfer (EFT) and are applied directly to your student's LMU account.
How to Apply for the Federal Parent PLUS Loan