What is it?
The Federal Direct Parent PLUS Loan is a federal educational loan borrowed by the parent of a dependent undergraduate. One parent can borrow, on a yearly basis, up to the total cost of attendance for the year minus the other financial aid the student is receiving. The interest rate is variable-fixed (for the 2023-24 academic year, the PLUS interest rate is fixed at 8.05% on PLUS loans taken during that year, for the life of the loan; the federal government resets the interest rate on new loans each July 1st).
There is also a 4.228% origination fee. Parents can request that a PLUS loan be deferred for up to four years while their student is an undergraduate. To calculate the yearly PLUS loan amount needed, log into The Nest and:
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From the Home page, click on Administrative Services, then Financial Aid.
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Under the Award Overview tab, take the Cost of Attendance (COA) figure listed
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Subtract total accepted grants, scholarships and federal student loans
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Do not include work study funds in this calculation. Funds are paid directly to students as earned.
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This figure is your "out of pocket" expenses that you may choose to finance.
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Apply for the Parent PLUS loan at studentaid.gov
Additionally, it is standard practice for loans to be set up as a fall/spring loan, thus the total amount needed from the fall bill should be doubled to cover the spring balance as well.
Who can use it?
A parent of a dependent undergraduate who passes the required credit check can borrow a Federal Direct PLUS Loan. The PLUS Loan credit check screens for major credit issues such as tax liens, bankruptcies, charge-offs on accounts within the last 90 days. If the parent fails the credit check, the student can borrow an additional Unsubsidized Federal Direct Student Loan in his/her name ($4,000/year as a freshman or sophomore, $5,000/year as a junior or senior).
Where can I access this service?
A parent can apply for a Parent PLUS Loan at studentaid.gov. Click the "Log In" button and use the Parent Information to sign in, this is the "PARENT" FSA ID used to electronically sign your FAFSA. This will be your electronic signature. Apply for a FSA ID if you do not have one already. Once you have received your FSA ID, you can go to www.studentloans.gov in order to complete the PLUS Application. Click Sign In and log in using your FSA ID.
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Click "Apply for Direct PLUS Loan" link
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Select Loan Type "Parent PLUS"
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Complete the PLUS Application for the correct award year (2023-2024 Award Year covers Summer 2023, Fall 2023, Spring 2024)
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You will be asked for our school name, from the drop down menu choose "Saint Joseph's University"
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You will be asked to choose the amount you wish to apply for. You may choose the maximum (the amount on your SJU Financial Aid Award Letter) or specify a lesser amount. Remember, loan amounts are processed annually and not by semester.
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You will receive a confirmation and a "Next Step" to complete the PLUS MPN (Master Promissory Note) for the name of the student.
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Sign the PLUS Master Promissory Note (MPN). The Federal Direct Plus Loan Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). If you are borrowing Direct PLUS Loans for more than one student, you'll need to complete a separate MPN for each one.
**These online forms MUST be completed to receive a Federal Direct Parent PLUS Loan for Undergraduate Students.
Once you have completed the necessary steps, you will receive a confirmation e-mail. If you receive the confirmation e-mail from Direct Lending, you do not need to check with SJU on the status of the loan.
To request a change to a previously completed Parent PLUS Loan Application, click here.