Federal Direct Parent PLUS Loan
All Summer 2013 Loan Requests & Credit Checks should be submitted no later than June 15, 2013
In addition, loans processed after July 1, 2013 will be more at risk of being delayed because they will be processed manually with the Dept. of Education.
As of July 1, 2013, the origination fee on all Federal PLUS Loans will increase from 4% to 4.204%. Therefore, students should complete all the requirements to receive your summer loan(s) before June 15, 2013. This legislation was part of the federal Sequester budget cuts that went into place on March 1, 2013.
The Federal Direct PLUS loan provides a borrowing option for parents of dependent undergraduate students. Eligibility for this credit based loan is based on a federal credit criterion that puts emphasis on the absence of negative credit entries rather than credit score. Please review the Federal PLUS credit criteria. A valid 2012-13 FAFSA must be completed for the student to be eligible for PLUS loan funds.
Steps for parents to obtain a 2013 Summer PLUS Loan:
Secure a PLUS credit decision:
· Go to http://studentloans.gov and sign in using your Federal Student Aid PIN (from pin.ed.gov).
· Click on the “Request PLUS Loan” link on the left side of the screen under the “PLUS Loan Process” heading.
· Select “Parent PLUS” as your loan type and complete credit check.
· Be sure to select 2013-2013 as the Award Year on Step 2
If you are approved:
· Complete your MPN if you have not previously borrowed a PLUS Loan at Fordham. Click the “Complete MPN” link on the left side of the screen and choose the “Parent PLUS option” to complete your MPN.
· Fill out and submit your 2013 Summer PLUS Loan Request Form.
If you are denied:
· You may reapply using an endorser. This is done by selecting the “Endorse PLUS Loan” option after logging into studentloans.gov.
· You can appeal the credit decision. This is done by selecting the “Appeal Credit Decision” option after logging into studentloans.gov.
· Students whose parent(s) are denied a PLUS Loan become eligible for additional Unsubsidized Stafford Loan Funding.
Parents can choose to defer payments on a PLUS loan until 6 months after the date the student ceases to be enrolled at least half time. The interest that accrues on the loan while it’s in deferment can either be paid by the parent borrower monthly or quarterly, or can be capitalized quarterly. To request a deferment, call the Direct Loan Servicing Center at (800) 848-0979. Deferments will not be approved until after the first loan disbursement has been made.
Interest Rate: 7.9%
Origination Fees: 4% or 4.204% after 7/1/13
Click Here to apply For a 2013 summer federal direct plus loan
Please remember that borrowers must complete a credit check at studentloans.gov as well as the form above.