Judson University Christian College: Admissions: Undergraduate Studies: Financial Aid: Parent Plus Loan

Parent Plus Loan

Parents can apply for a Parent PLUS loan through the Direct Loan program. A Direct PLUS Loan application is available now for parents to download, print, and complete.

Although it is not a federal requirement, Judson University requires dependent undergraduate students to file a Free Application for Federal Student Aid if their parents want to borrow a PLUS Loan. Filing the FAFSA ensures that students receive the maximum financial aid for which they are eligible.

 Parents who have previously borrowed through other loan programs (FFEL) will be mailed notifications to include instructions regarding how to complete the Direct Loan PLUS application process. 

Who Can Borrow

Parents* may borrow a Direct PLUS Loan to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.

*The parent-borrower must be the student's biological or adoptive mother or father. The spouse of a parent who has remarried, that is, the student's step-parent, is also eligible to borrow a PLUS Loan on the student's behalf, if his/her income and assets will be taken into account when calculating the dependent student's expected family contribution (EFC). A legal guardian is not considered a parent for any federal student financial aid purposes.

Parent Eligibility Requirements

A parent PLUS Loan borrower must meet the same citizenship and residency requirements as the student. The parent must not owe a refund on a federal student financial aid grant or be in default on a federal student financial aid loan.

Application Process

The application process must be completed each school year just as the FAFSA is completed each year. 

1.  The parent borrower must apply for the PLUS loan each year by completing the Direct Parent PLUS Loan Application and submit it to the Office of Student Financial Aid.

  • If parents are divorced or separated and more than one parent would like to borrow a PLUS loan, complete a separate application for each parent.  The total amount between both parents cannot exceed the total Cost of Attendance.
  • If parents are married, generally only one parent will borrow a PLUS loan.  Should both parents borrow a PLUS loan, each will begin repayment on both loans at the same time.

2.  After the Office of Financial Aid (OFA) receives the Direct Parent PLUS Loan Application, the OFA will send the PLUS loan application electronically to the Direct Loan Servicing Center for a credit check review. 
3.  While awaiting the approval of the credit check review, parent can complete the Direct Parent PLUS Loan Master Promissory Note (MPN) online at www.dlenote.ed.gov.  The MPN serves only as a promissory note.  It does not automatically generate the PLUS loan funds each year.  Parents would not be required to sign a Direct Parent PLUS Loan MPN each year. They are however required to complete the Direct Parent PLUS Loan application each year.

Please review the Direct Parent PLUS Loan Information and Instructions Sheet for further information.

Annual Loan Limit and Interest Rate

Amount that your parents can borrow under a PLUS Loan is equal to your cost of attendance (student budget) minus any other financial aid for which you are eligible.

The fixed interest rate for PLUS Loans disbursed July 1, 2011 - June 30, 2012 is 7.9%.

How PLUS Loans Are Disbursed

PLUS Loans are disbursed in two installments for the academic year, half in the fall semester and half in the spring semester. These disbursements must be of equal value. Example: Parent is approved for $5,000.00 for a Fall and Spring loan. The disbursement must be $2,500.00 for Fall and $2,500.00 for Spring.

Funds are electronically transmitted to Judson and applied to the student's tuition account. Excess funds, if any, are issued via check and mailed to the parent borrower. Parent PLUS borrowers who want excess funds issued directly to their son or daughter will inform our office of this during the application process.

Repayment of Federal Direct PLUS Loans

Repayment begins within 30 days of the final loan disbursement during the academic year, and parents will have ten years during which to repay the loan.

Postpone Repayment on a Federal Direct Parent PLUS Loan

Parents can defer repayment of the Federal Direct Parent PLUS Loan for up to one year by applying for a General Forbearance, and can re-apply for this provision annually while their student is enrolled at least half-time as an undergraduate. To apply, parents can complete a General Forbearance Form or contact the U.S. Department of Education's processing center directly at 1-800-848-0979. To qualify, parents must state verbally or in writing that they are financially unable to make the monthly payments. Parents can apply for forbearance after the loan has fully disbursed and prior to the beginning of the repayment period. If parents choose the forbearance provision, it's important to note you can pay the interest while the student is in school to decrease the amount that will be repaid.

Financial Aid Counselors

Our counselors are here to help you through the financial aid process at Judson University. You can meet with your counselor at an upcoming campus preview day, or at a campus visit. You may also send them an email about any financial aid questions you might have. Who's Your Counselor? >

File Your Fafsa Today

To Complete your Free Application For Federal Student Aid, please visit www.fafsa.ed.gov. Judson's School Code is 001700

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