Federal Direct Parent PLUS Loan Undergraduates

Steps:   

  1. Federal Direct Parent PLUS Loan Request Form  
  2. E-sign Your Direct PLUS Loan Master Promissory Note

PLUS Counseling-is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documents to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. PLUS Counseling can be completed at www.studentloans.gov.

The Federal Direct Parent PLUS Loan for Undergraduate students is available to credit-worthy parents of dependent undergraduate students. The student must file a Free Application for Federal Student Aid (FAFSA).  If a parent is unable to obtain a Federal Direct Parent PLUS Loan, the parent may obtain a credit-worthy endorser, appeal the decision with the Federal Servicer's Applicant Services or the dependent student may receive increased loan limits under the Undergraduate Direct Unsubsidized Stafford Loan Program.

Application: Apply for the academic year. The loan cannot be applied for more than 180 days before the start of the academic year.  Please note the Federal site does not presently accommodate the University of Scranton procedures for the Parent PLUS process.

New Parent Borrowers:

  • Complete the online University of Scranton Federal Direct Parent PLUS Loan Request Form.
  • Complete the Federal Direct PLUS Loan Master Promissory Note (MPN). You must have a Department of Education issued Federal Student Aid ID, FSA ID, before completing and signing the electronic MPN.

Current Parent Borrowers:

  • Complete the online University of Scranton Federal Direct Parent PLUS Loan Request Form.
  • Only if the Direct Parent PLUS Loan was approved with a credit-worthy endorser in the prior year, will a new Electronic Master Promissory Note (MPN) need to be completed.

Q.Why do I have to complete the Federal Direct Parent PLUS Loan Request Form?

A. The Financial Aid Office will originate the loan and initiate the mandatory credit check through the Federal Servicer by using the information provided on the form.

Q.  What are the next steps if the Direct Parent PLUS Loan is denied? 

A.  If the loan application is denied, you will be contacted by the Federal Servicer (in writing) and given the option of appealing the credit decision or resubmitting the application with a credit-worthy endorser. Questions concerning your credit decision should be directed to the Federal Servicer’s Applicant Service at 1-800-557-7394.  To request the additional Undergraduate Direct Unsubisidzed Stafford Loan, the parent borrowing the Direct Parent PLUS Loan must email finaid@scranton.edu if not requested during the online Federal Direct Parent PLUS Loan Request Form.

New: PLUS Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documents to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. PLUS Counseling can be completed at www.studentloans.gov.

Q. Do I have to complete the Federal Direct Parent PLUS Loan Request Form each year?

A. Yes. Each subsequent year, the parent will need to go through a credit check and request the annual loan amount.

Q. If I completed a Direct PLUS Loan MPN for my dependent child, do I have to complete another one?

A. No. The Direct PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college provided you do not require an endorser.
A. Yes. If the Direct PLUS Loan was approved with a credit worthy endorser in the prior year, a new Electronic Master Promissory Note will need to be completed.


Deadline:
Federal Direct PLUS Loan applications must be certified by the Financial Aid Office by the last day of the semester.

Loan Limits per Academic Year:
The maximum parents may borrow in the Federal Direct Parent PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Aggregate Loan Limits:
There is no aggregate limit.

Interest Rate:
Loans disbursed between July 1, 2015 and June 30, 2016 have a fixed interest rate of 6.84% during this period.

Fees:
Effective December 1, 2013, sequestration of federally budgeted funds occured. 

The origination fee is 4.272% from October 1, 2015 through September 30, 2016.  The amount equals 95.728% for each disbursement of the loan.

Loan Reductions/Cancellations:
Parents may request the Federal Direct Parent PLUS Loan be reduced or canceled. The request must be in writing from the parent, not the student. Please include the parent borrower's name, the student's name, the student's Royal ID number, and the amount you want the loan reduced to.