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 also encouraged to apply. To be eligible to apply for this loan, the student must be a U.S. Citizen or permanent resident who is 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?
Federal regulations state that the maximum that a parent may borrow is the school's standard Cost of Attendance, minus all other financial aid the student has received.  If you apply for a higher amount than you are eligible, LMU will certify your PLUS Loan for the maximum amount allowed.

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. However, most lenders provide a second review of your credit in the event you are denied the Federal PLUS Loan the first time. Parents that are denied for the Federal PLUS Loan may be approved in the second review process

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 is my loan processed?
After you apply with your lender, your lender will notify LMU that your loan has been approved, usually within 3 business days. LMU will then certify the loan, i.e. notify the lender that the student is enrolled, and indicate the amount you are eligible to borrow, and the loan funds will be sent to LMU for disbursement to the student's account 7-10 business days after certification.

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 according to federal regulations; first disbursement (50%) in the fall semester and the second disbursement (50%) 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