How to Apply for a Federal PLUS Loan
Determine if you are eligible to apply for a PLUS loan., Ensure you have a good credit score., Complete the FAFSA online forms., Request a direct PLUS loan online., Sign a Master Promissory Note., Complete entrance counseling., Evaluate the interest...
Step-by-Step Guide
-
Step 1: Determine if you are eligible to apply for a PLUS loan.
In most cases, eligibility for these loans is limited to graduate or professional students enrolled at an eligible school, or the parent or adoptive parents of a child enrolled in an undergraduate program.
In some cases, a stepparent may also be eligible to take out a federal PLUS loan.The applicant also must be a U.S. citizen or permanent resident. -
Step 2: Ensure you have a good credit score.
For most federal PLUS loans, the applicant is required to undergo a simple credit check in order to assess their credit worthiness.
If you have an adverse credit score you may still be eligible to receive a PLUS loan.For instance, you could obtain an endorser with a good credit rating who will agree to repay the loan in the event that you default on your payments.
Alternatively, if you can explain any extenuating circumstances, such as a foreclosure or bankruptcy discharge, you may still be able to get the loan.
This will be determined on a case-by-case basis by the administrator of the loan., Before you can receive a PLUS loan you (or your child, if you are a parent borrower) must fill out the Free Application for Federal Student Aid forms.
These forms will give you access to a number of different loan programs, both federal and state.
These forms need to be completed each year that you (or your child) are enrolled in postsecondary education in order to be eligible for funding.Typically forms become available in October for the following school year.
These forms are available from the following website: https://studentaid.ed.gov/sa/fafsa , Visit the website studentloans.gov to find the forms to request a PLUS loan.
The request forms will have a list of schools that participate in the direct loan program.
If your school is not listed, you will need to speak with your school’s financial aid office to determine how to request a loan.
The PLUS loan request application must be completed in a single session and will take approximately 20 minutes.
The forms will ask you to provide the following information:
The name of school you (or your child) attends.
Your child’s name, social security number, date of birth, address, and phone number.
Your name, mailing address, telephone number, and email address.
Your employer’s name, address, and telephone number. , This is a legally binding document that sets up the terms of your loan repayment.
For example, you may decide to defer the repayment of the loan until your child has completed their schooling.
It is important that you carefully read and keep this form in your records because you will need to refer to it once you begin repaying your loan, Before your loan is paid out, your school may require you to complete some form of entrance counseling.
This is quite common if you have never received a federal PLUS loan before.
Talk with the financial aid office at your school to find out how the counseling is delivered.
This will vary depending on the school, but could include in-class or online counseling.Typically online counselling takes approximately 30 minutes to complete. , Your interest rate will determine how much you pay on your federal PLUS loan over time.
Be sure to inspect this aspect of the loan carefully before accepting the loan.
You can find the current interest rate online on the government student aid website., All federal PLUS loans include a loan fee that is applied each time your loan is disbursed.
This fee is a percentage of the total loan and is removed automatically upon disbursement.
The fee will vary from year to year., In many instances, these loans will be applied directly to your tuition, fees, and room and board.
In some instances there may be left over money available after all school fees have been paid.
In this instance the school may make a payment directly to the borrower.
Check to make sure that the administration correctly applies your loan to your student fees.
Federal PLUS loans are usually disbursed over the various quarters of a student's education.
Talk with the financial aid office at your school to determine when the loan will be paid out. , If you are a graduate or professional student, you will not have to repay your loans while you are still enrolled in school.
You will begin repaying the loan six months after you have stopped attending the school.
As a parent borrower, you will begin paying the loan as soon as the complete loan has been paid out.You can work with your loan servicer to defer repayment until after your child completes their schooling. , There are a variety of different payment options available.
For example, you could choose a standard repayment option with fixed payment rates.
If you choose this option, you will likely pay less in the long run, but your payments may be more expensive.Alternatively, you could choose a graduated payment plan.
Typically the payments will be lower to begin with and then increase every two years as you become more financially established after school. , If you are unable to make your monthly payments, you should talk with your loan servicer immediately to come up with alternative payment options.
For instance, you may be able to change plans in order to make lower monthly payments.
Alternatively, you may be able to defer your payments temporarily. -
Step 3: Complete the FAFSA online forms.
-
Step 4: Request a direct PLUS loan online.
-
Step 5: Sign a Master Promissory Note.
-
Step 6: Complete entrance counseling.
-
Step 7: Evaluate the interest rates.
-
Step 8: Understand additional charges.
-
Step 9: Check that your loan is paid out.
-
Step 10: Determine when you will begin repaying your loan.
-
Step 11: Talk with your loan servicer about payment options.
-
Step 12: Change your payment plan if you have difficulty paying your loan.
Detailed Guide
In most cases, eligibility for these loans is limited to graduate or professional students enrolled at an eligible school, or the parent or adoptive parents of a child enrolled in an undergraduate program.
In some cases, a stepparent may also be eligible to take out a federal PLUS loan.The applicant also must be a U.S. citizen or permanent resident.
For most federal PLUS loans, the applicant is required to undergo a simple credit check in order to assess their credit worthiness.
If you have an adverse credit score you may still be eligible to receive a PLUS loan.For instance, you could obtain an endorser with a good credit rating who will agree to repay the loan in the event that you default on your payments.
Alternatively, if you can explain any extenuating circumstances, such as a foreclosure or bankruptcy discharge, you may still be able to get the loan.
This will be determined on a case-by-case basis by the administrator of the loan., Before you can receive a PLUS loan you (or your child, if you are a parent borrower) must fill out the Free Application for Federal Student Aid forms.
These forms will give you access to a number of different loan programs, both federal and state.
These forms need to be completed each year that you (or your child) are enrolled in postsecondary education in order to be eligible for funding.Typically forms become available in October for the following school year.
These forms are available from the following website: https://studentaid.ed.gov/sa/fafsa , Visit the website studentloans.gov to find the forms to request a PLUS loan.
The request forms will have a list of schools that participate in the direct loan program.
If your school is not listed, you will need to speak with your school’s financial aid office to determine how to request a loan.
The PLUS loan request application must be completed in a single session and will take approximately 20 minutes.
The forms will ask you to provide the following information:
The name of school you (or your child) attends.
Your child’s name, social security number, date of birth, address, and phone number.
Your name, mailing address, telephone number, and email address.
Your employer’s name, address, and telephone number. , This is a legally binding document that sets up the terms of your loan repayment.
For example, you may decide to defer the repayment of the loan until your child has completed their schooling.
It is important that you carefully read and keep this form in your records because you will need to refer to it once you begin repaying your loan, Before your loan is paid out, your school may require you to complete some form of entrance counseling.
This is quite common if you have never received a federal PLUS loan before.
Talk with the financial aid office at your school to find out how the counseling is delivered.
This will vary depending on the school, but could include in-class or online counseling.Typically online counselling takes approximately 30 minutes to complete. , Your interest rate will determine how much you pay on your federal PLUS loan over time.
Be sure to inspect this aspect of the loan carefully before accepting the loan.
You can find the current interest rate online on the government student aid website., All federal PLUS loans include a loan fee that is applied each time your loan is disbursed.
This fee is a percentage of the total loan and is removed automatically upon disbursement.
The fee will vary from year to year., In many instances, these loans will be applied directly to your tuition, fees, and room and board.
In some instances there may be left over money available after all school fees have been paid.
In this instance the school may make a payment directly to the borrower.
Check to make sure that the administration correctly applies your loan to your student fees.
Federal PLUS loans are usually disbursed over the various quarters of a student's education.
Talk with the financial aid office at your school to determine when the loan will be paid out. , If you are a graduate or professional student, you will not have to repay your loans while you are still enrolled in school.
You will begin repaying the loan six months after you have stopped attending the school.
As a parent borrower, you will begin paying the loan as soon as the complete loan has been paid out.You can work with your loan servicer to defer repayment until after your child completes their schooling. , There are a variety of different payment options available.
For example, you could choose a standard repayment option with fixed payment rates.
If you choose this option, you will likely pay less in the long run, but your payments may be more expensive.Alternatively, you could choose a graduated payment plan.
Typically the payments will be lower to begin with and then increase every two years as you become more financially established after school. , If you are unable to make your monthly payments, you should talk with your loan servicer immediately to come up with alternative payment options.
For instance, you may be able to change plans in order to make lower monthly payments.
Alternatively, you may be able to defer your payments temporarily.
About the Author
Thomas James
Professional writer focused on creating easy-to-follow practical skills tutorials.
Rate This Guide
How helpful was this guide? Click to rate: