Federal Direct Parent PLUS Loan Undergraduates

The 2014-2015 Direct Parent PLUS Loan Request Form for Summer 2014, Fall 2014 and Spring 2015 is available.  However, loans will not be processed until mid-June.  

Steps:   

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

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 90 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 Personal Identification Number (PIN) before completing and signing the electronic MPN. If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN Website.

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.  

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, 2013 and June 30, 2014 have a fixed interest rate of 6.41% during this period.

Interest Rate:
Loans disbursed between July 1, 2014 and June 30, 2015 have a fixed interest rate of 7.21% during this period.

Fees:
Effective December 1, 2013, sequestration of federally budgeted funds occured.  The Direct Parent PLUS Loan origination fee increased to 4.288% until September 30, 2014.  The amount equals 95.712% 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.

Repayment:
The first payment is due within 60 days after the final loan disbursement for the year. Beginning July 1, 2008, parents may choose to defer payments on a PLUS loan until six months after the date the dependent student ceases to be enrolled at least half-time. Accruing interest may either be paid by the parent or be capitalized. A parent may take up to 10 years to repay the loan, depending upon the amount borrowed. Parents may also pay the balance of the loan, plus any interest due, early and without a penalty.

Direct Loan Servicers: 

You may find your actual servicer by visiting the NSLDS Student Access website. 

Federal Direct Loan Consolidation:

A Consolidation Loan allows parents to combine one or more of your federal PLUS Loans into a new loan that offers you several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments. Before making a decision to consolidate your federal student loans, consider factors such as the affordability of your monthly payments, the number of payments you need to make to multiple lenders, the interest rates on each of your loans, and how much you are willing to pay over the long term. For more information, call the Federal Direct Consolidation at 1-800-557-7392.

Apply:

Direct Loan Consolidation

National Student Loan Data System (NSLDS):

Students and parents with federal loans will have loan information submitted to the National Student Loan Data System (NSLDS), which will be accessible to guaranty agencies, lenders, and schools. It is recommended that students and parents with federal loans visit the NSLDS Student Access website. You will need your Federal Student Aid PIN to access the website; you have used the PIN when electronically signing your loans or when completing your FAFSA. You can request a duplicate PIN be sent to you.