How to Apply
- At StudentLoans.gov, the parent borrower will need to "Sign In" using their federal PIN. (same PIN that was used to sign the FAFSA.)
- Once signed in, you will want to "Request a PLUS Loan". The loan type will be "Parent PLUS".
- To complete the application, you will need to provide:
- Personal Information
- Employer Information (if employed)
- Academic year (i.e. 2011-2012)
- Student Information
- Your deferment choice (would you like to repay loan while your student is enrolled or begin repayment after they cease enrollment)
- Your choice for a credit balance (what to do if there are extra loan funds after academic costs are paid)
- School Information
- Loan Information (amount requesting and semesters)
- You will then need to review the application information and submit it for a credit check.
- If the loan is approved, the parent borrower will then be directed to complete the Master Promissory Note (for first time borrowers.) The loan funds will be credited directly to the student's account. If you choose to borrow through the Direct PLUS loan program in future years, you will need to complete a new application each year, but you will not have to sign another master promissory note for that student. The promissory note is good for up to 10 years.
- If the loan is denied, you will be given the option to appeal the credit decision, obtain an endorser for the loan, or allow an increase in the student's unsubsidized student loan. (If you obtain an endorser for the loan, a new promissory note will need to be signed each year.)
About the Parent PLUS Loan
- A non-need-based federal parent loan program administered by Valparaiso University
- A FAFSA must be on file for the student.
- Parent of a dependent undergraduate student
- US Citizens or eligible non-citizens.
- Not in default on prior educational loans.
- Meets federally defined credit worthiness standards.
- (Student is) making satisfactory academic progress.
Credit Worthiness Standards
To meet the credit worthiness requirements, an applicant cannot be:
If parent fails credit test, the student may borrow additional unsubsidized loan money. Up to $4000 more for freshman and sophomores and up to $5000 more for juniors and seniors.
- 90 days or more delinquent on the repayment of any debt
- the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.
Annual Loan Limits
Cost of attendance less other aid
A 4.0 percent Loan Fee is deducted from the Federal PLUS loan before it is credited toward the charges. However, 1.5 percent of the fee is immediately refunded back in the form of an interest rebate. The net effect of this rebate is that you will receive the loan amount requested less 2.5 percent. If the first twelve required monthly payments are not made on time, the rebate amount will be added back to the loan.
- No federal interest subsidy; Interest begins to accrue after first disbursement.
- Payment of principal and interest begins 60 days after the final disbursement.
- (For loans first disbursed after July 1, 2008) You can request an in-school deferment as long as your student is enrolled at least 1/2 time.
- 30 year maximum repayment period