Federal Parent PLUS Loan

The parent of a student enrolled in a Title IV eligible program at MUD may apply for a Federal Parent PLUS Loan. The Federal Parent PLUS Loan is a non-need-based loan. The credit worthy parent of a dependent student secures his or her loan from a lending institution such as a bank, credit union, or any other participating lending institution (dependency status is determined using the FAFSA). The interest rate is fixed at 8.5%. The parent borrower is responsible for the interest that accrues on the Federal Parent PLUS Loan. A default fee and an origination fee will be assessed. The parent borrower is responsible for repayment. Repayment begins with sixty days of the final loan disbursement. Parents may make a request to the lender to defer payments while the student is enrolled at least half-time. Minimum monthly payment is $50 per month. Standard repayment period is ten years.

To apply for a Federal Parent PLUS Loan, the parent must first provide required information on their dependent students Free Application for Federal Student Aid, as per school policy, which will be used to determine borrower eligibility. The parent must also complete a Master promissory Note with the lender of their choice.

If due to circumstances such as adverse credit history, a dependent student’s parent is denied a Federal PLUS Loan, the student will be allowed the loan limits applicable to an independent student under the Unsubsidized Federal Stafford Loan Program.