Parent Loans for Undergraduate Students (PLUS)
Federal Direct Parent Loans for Undergraduate Students (PLUS) are long-term, non-need-based loans for parents of dependent undergraduate students. With the PLUS Loan program, parents can borrow up to the full cost of their child's attendance, as defined by Seminole State's Office of Financial Aid and Scholarships, minus any financial assistance the child receives.
The interest rate is fixed at 8.94 percent with a 4.228 percent origination fee. For more information on interest rates go to the Loan Servicing Center.
PLUS Application Procedures
- Student Completes a Financial Aid Application
The dependent student must submit a FAFSA and list Seminole State's school code (001520) on the application. Additionally, the student must complete all items on their To-Do List in MySeminoleState. - Parent Submits a Loan Application
The parent borrower is required to submit a Federal Direct PLUS Loan Information and Application, which is available online at studentaid.gov. - Parent E-Signs a Master Promissory Note
To disburse PLUS funds, the parent borrower must complete a Master Promissory Note upon loan approval. This note remains valid for any future loans borrowed on behalf of the same student for up to 10 years.
By e-signing the Master Promissory Note, the parent authorizes the Department of Education to perform a credit check to determine eligibility for the PLUS loan. If the loan application is denied, the parent may consider finding a co-signer. For further assistance, call the U.S. Department of Education at 800.433.3243, or review the PLUS Loan section of the Federal Student Aid website.
The Department of Education will notify Seminole State once the electronic Master Promissory Note is completed and accepted. If a co-signer is involved, a new promissory note must be completed for any future loan applications. - Loan Funds are Disbursed
After the application process is complete, and the student has begun enrollment in at least six credit hours, the PLUS Loan funds will be disbursed and credited to the student's billing account. If there are remaining funds after all charges are paid, the difference will be sent to the parent unless the parent authorizes the amount to be given to the student.
Note: If opting for a one-term loan, the loan will be divided into two disbursements. For a two-term loan, the amount will be split equally between the two terms (e.g., half the loan in the Fall and half in the Spring).
PLUS Terms and Eligibility Criteria
The following criteria must be met for PLUS Loan eligibility:
- Borrowers must be deemed creditworthy.
- Borrowers and dependent students must be U.S. citizens or eligible non-citizens.
- Borrowers and dependent students must not be in default on any type of student loan or owe any education grant refunds.
- Dependent students must submit a Free Application for Federal Student Aid (FAFSA).
- Dependent students must be enrolled and begin attendance in a degree or certificate program on at least a half-time status (six credit hours or more).
- Dependent students must have utilized the maximum allowable yearly amount for Federal Direct Subsidized and Unsubsidized loans, which typically have better terms and interest rates than PLUS loans.
- If a PLUS Loan is denied, students may qualify for additional unsubsidized loans upon request.
When to Make PLUS Payments and Deferments
If you request a deferment, you will not need to make payments while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment. If the school your child is attending requires you to submit your request for a parent PLUS loan at StudentAid.gov, you’ll have the option of requesting a deferment as part of the loan request process. You may also contact your loan servicer directly to request a deferment.
If you do not request a deferment, you will need to begin making payments once the loan is fully disbursed.
During deferment periods, interest will continue to accrue on your loan. You can choose to pay the accrued interest or allow it to be capitalized (added to your loan principal balance) when payments begin. Your loan servicer will notify you when your first payment is due.