Parent PLUS Loan

The Federal Direct Parent Loan for Undergraduate Students (PLUS) helps parents assist with their student’s educational costs. PLUS loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time (six credit-hours).

How do I apply for a Federal Direct Parent PLUS Loan?
Who can apply and what are the requirements?
How does the Direct PLUS Loan affect my financial aid?
What is the interest rate, origination fee and repayment for the Direct PLUS Loan?

---

How do I apply for a Federal Direct PLUS Loan?

• 2011-2012 Direct Parent PLUS Loan Application Instructions

---

Who can apply and what are the requirements?

The biological or adoptive parents of the student attending UTSA are eligible to apply for the PLUS loan. People classified as grandparents, legal guardians, or extended family and friends are NOT eligible to pursue this loan.  A stepparent is eligible to apply for the PLUS loan only if he or she is currently married to the biological or adoptive parent, and the stepparent’s income and assets are currently included on the student’s Free Application for Federal Student Aid (FAFSA). 

Additionally, the student must meet the following requirements:
·       Student must be classified as a dependent, undergraduate student.
·       Student must be enrolled at least half-time (6hrs) per semester.
·       Student must be making Satisfactory Academic Progress (SAP).

---

How does the Direct PLUS Loan affect my financial aid?

• Parents can generally borrow the difference between the university's cost of attendance minus the student's other financial assistance.
• Effective for the 2011-2012 academic aid year, students must file a FAFSA to be eligible for the Parent PLUS Loan program.

---

What is the interest rate, origination fee and repayment period for the Direct PLUS Loan?

• The interest rate is 7.9%. The PLUS interest rate is a fixed rate and is set July 1st of each year. 
• PLUS loans are subject to a 4% origination fee, however, there is a 1.5% interest rate rebate that helps reduce this fee.  Once repayment begins, you must make 12 on-time monthly payments to retain this benefit.
• The repayment period for a PLUS Loan begins on the date of the final disbursement of the loan and the first payment is due within 60 days after the date the loan is fully disbursed. Although repayment does not begin until after the final disbursement, interest does accrue while the student is enrolled.  Parents must contact the Direct Loan Servicing Center at 1-800-848-0979 to request a deferment based on the dependent student’s enrollment status