Financial Aid Office

FEDERAL DIRECT PARENT PLUS LOAN

If you are interested in the Federal Direct Parent Plus Loan, your maximum loan amount for the year was shown on the Official Offer of Award.

To Initiate Your Loan

First, return your signed award letter indicating your acceptance of the offer with the completed Plus Loan Application form.
This will generate a credit check on the parent who is taking out the loan.   If your parent's application is denied, contact the Financial Aid Office to discuss your options.

Second, if this is your parent's first Plus Loan, the parent who is taking out the loan must go the Direct Loan web site and complete the Master Promissory Note.

Disbursement

The approved loan (less fees) will disburse into the student's account after all steps are completed.  Please allow 10 days for processing.  Loans will be divided in half, with 50% of the loan disbursing at the beginning of the period and 50% at the mid-point.  For fall/spring loans, one half will disburse in the fall and one half will disburse in January.

Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible. The interest rate varies and is based on 91-day treasury bill rates. The interest rate for 2009-10 is 7.9 percent.

A four percent origination fee is deducted from each of two disbursements made in a school year, and an up-front interest rebate of 1.5 percent is added.

Repayment

For PLUS loans that are first disbursed on or after July 1, 2008, Parent PLUS borrowers the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least a half time basis. Parent borrowers can call Borrower Services at 1-800-848-0979 to request an in-school deferment for their dependent child.  This change is only for PLUS loans that are first disbursed on or after July 1, 2008.  Parents should wait until the first half of the loan is disbursed in September to make this call.

Due to the processing time, loan requests can not be honored during the last two weeks of the semester. Please submit any requests for alternative or direct loans to the LSSU Financial Aid Office before the last two weeks of the semester.