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Federal Direct Parent Loan for Undergraduate Students (PLUS)
Please Note: PLUS applications for the 2012-13 school year should not be submitted until after June 01, 2012
Parents of dependent students may apply for a Federal Direct PLUS Loan to help pay their child's education expenses, as long as certain eligibility requirements are met. PLUS loans will be issued in the parent's name, and the parent will be responsible for repayment.
To be eligible, the parent borrower must:
- Have reported parent information on the student's FAFSA, or be the student's biological or adoptive parent.
- Be applying for a dependent student who is enrolled at least half-time (6 credit hours).
- Not have an adverse credit history (a credit check will be done) - see also Additional Information below.
- Be a U.S. citizen or eligible non-citizen.
PLUS loans are considered financial aid and students must meet WIU Satisfactory Academic Progress Requirements to remain eligible to receive PLUS funds.
PLUS loans are processed through the Federal Direct Loan Program and offer a fixed interest rate of 7.9% - interest charges will begin when the loan is first disbursed. Parent may borrow up to the student's cost of attendance minus any financial aid received by the student.
PLUS funds are disbursed directly to the student's University account - semester funds will credit towards any unpaid tuition, fees, and University contracted room and board for that semester. Parent borrowers should refer to credit balance procedures as issued by the Billing & Receivables Office to determine how excess funds will be handled.
Before a Parent PLUS loan can be processed, the student must complete a Free Application for Federal Student Aid (FAFSA).
Parents may submit a PLUS application after June 1 prior to the start of the academic year (for spring-only PLUS loans, please submit after November 1). It is highly recommended that parents start this PLUS loan application process 6-8 weeks prior to enrollment in order to better guarantee that the disbursement will arrive on time.
PLUS loan applications must be received by the Financial Aid Office while the student is actively enrolled, giving a minimum one week notice to allow for processing. Parent PLUS loans cannot be requested to pay a past due balance after enrollment has ended for that school year.
To apply for a Parent PLUS loan, the parent should visit www.studentloans.gov:
- Parents will need to log in using their 4-digit parent PIN number (used to electronically sign their student's FAFSA)
- Parents will need to specify a loan period -
- If you would like your PLUS loan to be for the Fall 2012 semester only (one disbursement), your loan period should be 08/2012 - 12/2012
- If you would like your PLUS loan to be for the Spring 2013 semester only (one disbursement), your loan period should be 01/2013 - 05/2013
- If you would like your PLUS loan to be for the entire 2012-13 academic year (two disbursements - one fall, one spring), your loan period should be 08/2012 - 05/2013
- Parent may specify the amount they wish to borrow, or allow the school to determine the maximum amount needed for the specified loan period.
- Parent borrowers must also complete a Master Promissory Note, which is the borrower's agreement to terms and repayment.
Prior to disbursement, a federal origination fee of 4% is deducted proportionately from each loan payment forwarded to the school by the DL Loan Origination Center (i.e. for every $100 borrowed, the student receives $96).
If the parent does not pass the PLUS credit check, the parent may still receive the PLUS loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so.
Students whose parent is denied a PLUS loan may be eligible for an additional Federal Direct Unsubsidized loan - for more information, contact the WIU Financial Aid Office.
- Students with an EFC over $2,000 may be considered for the same additional Federal Direct Unsubsidized loan without applying for a Parent PLUS Loan if the parent(s) can demonstrate that they are unable to repay a PLUS loan due to economic hardship. Please submit the Appeal for Additional Unsubsidized Loan due to Economic Hardship form.
- Students with an EFC under $2,000 may be considered (by request) for the same additional Federal Direct Unsubsidized loan without applying for a Parent PLUS Loan or submitting additional forms. Please contact the WIU Financial Aid Office to inquire about your eligibility.
Interest begins to accumulate after the first PLUS disbursement is made. The standard PLUS repayment period begins 60 days after the loan is fully disbursed. However, the parent may elect to defer repayment while the student is enrolled on at least a half-time basis.
For additional information regarding repayment, contact your loan servicer after your application has been approved.