Federal Parent Loan for Undergraduate Students (PLUS)
The information on this page is only for parents of SNU students who have filed the Free Application for Federal Student Aid (FAFSA) and their student has received an official "Financial Aid Award Letter." All students are urged to complete a FAFSA. Families are often surprised to learn the student may qualify for more preferable aid programs by completing the FAFSA.
Here is some brief information about Parent (PLUS) Loans:
A PLUS is a loan that a parent applies for on the behalf of the student. The PLUS fixed interest rate is set by the federal government at 8.5%. Your award letter reflects the amount that is needed to pay expenses not covered by other federal and state programs and scholarships. The PLUS requires a credit check and is based on credit history and not income to debt ratio. If a PLUS is not approved by the lender, then the student may be eligible for an additional Unsubsidized Stafford Loan in his or her own name. If the student attends both fall and spring semesters, the PLUS is divided into two equal disbursements (one for each semester). Repayment on a PLUS begins 60 days after the final disbursement for the school year. Deferment of payments is available while the student is in school, however interest will continue to accrue. You may choose to pay the interest while your student is in school so it does not capitalize, or you may defer the interest payments along with your principal loan balance. Before your loan goes into repayment you may contact your lender to request a deferment.
The following additional restrictions apply to the Federal PLUS Loan:
Parents may only borrow Federal PLUS Loans on behalf of dependent students. A parent is defined as a natural parent, an adoptive parent, or a step parent whose information appears on the FAFSA. Both the student and the parent borrower must be either U.S. citizens or eligible non-citizens.
Students must be making Satisfactory Academic Progress (SAP) for parents to borrow this loan. To view requirements visit Satisfactory Academic Progress under the Financial Assistance directory at this website.
If you wish to pursue borrowing a Federal PLUS Loan, go to your student's SNU Financial Assistance Award Letter and click "Apply Now."