Direct Parent PLUS Loans
Crown College participates in the Federal Direct Loan Program for PLUS Loans. These are low-interest loans specifically for parents to help pay for the cost of a child?s education after high school. The U.S. Department of Education is the lender for this program?not a bank or other financial institution.
How to Apply for a Direct Parent PLUS Loan
- The parent borrower should complete a Federal Direct PLUS Loan Application and Credit Authorization Form and return it to the Crown College Financial Aid Office.
- The parent borrower should complete a PLUS Loan Master Promissory Note for each dependent student he/she plans to borrow for. The parent borrower will need his/her own PIN to complete this step online. If the parent borrower does not have a PIN or has lost one, please visit www.pin.ed.gov.
SPECIAL NOTE: Crown College has elected not to participate in the PLUS loan electronic application process offered at www.studentloans.gov for the 2012-13 academic year. The parent borrower will need to complete the PLUS MPN at this site, in addition to submitting the paper PLUS Loan application and credit authorization form to Crown College.
Parents may borrow up to the cost of attendance less other aid. A credit check is required and will be performed when your application is transmitted to the Department of Education. The minimum payment is $50/month.
Direct Parent PLUS Loans have a 7.9% fixed rate for the 2012-13 academic year.
The fee for a Direct PLUS loan is 4%.
Repayment begins 60 days after the loan has been fully disbursed. However, a parent borrower may request that repayment be delayed until six months after the student graduates or is no longer enrolled at least half-time.
To request this deferment, parents must contact the Direct Loan Servicing Center. Information regarding repayment may be found online on the Direct Loan Servicing website at www.dl.ed.gov and all repayment questions should be direct to Borrower Services at the Direct Loan Servicing Center at 1-800-848-0979.
What happens if the Direct PLUS loan is denied?
If your application is denied due to credit, you will receive notification from the Direct Loan Servicer. You may then choose to have a credit override completed by the servicer, have a third party endorser co-sign the loan with you, or your student may borrow additional funds through the Unsubsidized Stafford Loan program. If you choose the last option, the student borrower must inform the financial aid office in writing of their intent to borrow this additional amount.