Federal Direct PLUS Loan for Undergraduate Students
One option to cover your student's college expenses is the PLUS Loan. PLUS Loans are designed for parents of undergraduate dependent students to borrow funds to help pay for their student's college education.
PLUS Loan is available to parents of dependent, undergraduate students. You must be a U.S. citizen, or eligible non-citizen to qualify.
Eligibility is not based on financial need, however credit guidelines will apply in determining your eligibility. A parent with an adverse credit history who is denied a PLUS Loan will be notified of that denial. In the event that your credit is denied, please contact the Financial Aid staff to request additional unsubsidized Direct Student Loan for the student.
Parents may borrow an amount equal to the cost of attendance minus any other aid. Consider your other loan payments when determining your borrowed amount and do not overextend your ability to repay your total indebtedness. If the PLUS Loan will be borrowed each year that the student is enrolled, please include those future loan amounts when determining your total indebtedness.
When to Apply
A credit review is required by the Department of Education as part of the PLUS application process. Do not apply for a PLUS more than 60 days prior to the start of classes. The credit review is valid for a period of 90 days, during which a Master Promissory Note (MPN) must be activated.
New College does not certify loans until mid-August before the start of the academic year. If we certify your loan after the credit review expires, the Department of Education is required to do another. A new MPN may also be required.
What Will You Need to Apply
Your Federal Student Aid PIN - If you do not have a Federal Student Aid PIN, please visit the PIN site
• Permanent address
• Mailing address (if different from permanent address)
• Telephone Number
• Email Address
• Alien Registration Number (if you are an eligible non-citizen)
• Social Security Number
• Employer Name
• Employer Address
• Student first name, middle initial and last name
• Student social security number
• Student date of birth
• Student address
• Student telephone number
Reference Information for two people with U.S. address who have known you for at least 3 years. Do not list the Direct PLUS Loan borrower or the dependent undergraduate student as a reference.
• Reference Names
• Reference Addresses
• Reference Telephone Number
How to Apply
Beginning with the 2013-2014 academic year, the student on whose behalf you will be completing the PLUS loan application must have submitted a FAFSA for the current academic year. If selected, verification paperwork and supporting documents must be finalized.
Click here to apply for a PLUS loan.
Please contact the Financial Aid staff once an application has been made. All borrowers will be required to complete a Federal Direct Parent PLUS Loan Master Promissory Note (MPN) if you plan to borrow money for the 2014-2015 academic year, even if you have borrowed from the Federal PLUS Loans in the past. All PLUS Loan borrowers will also be required to complete the Parent Plus Loan Authorization Form and return it to the Business Office.
For loans disbursed after July 1, 2014, the PLUS Loan has a fixed interest rate = 7.21%.
Origination and Default Fees
For loans disbursed on or after December 1, 2013 and before October 1, 2014, there is a 4.288% origination fee. For loans disbursed on or after October 1, 2014 and before October 1, 2015, the origination fee will adjust to 4.292%.
The loan funds will be electronically sent to New College. The loan will be disbursed in two installments, half in the Fall semester and half in the Spring semester.
Repayment begins within 60 days after the final loan disbursement. There is no grace period for these loans. However, you may request a deferment in certain circumstances. In order to find out more information about repayment, please visit www2.ed.gov/offices/OSFAP/DirectLoan/parentrepay.html.