2014-2015 Federal Direct Parent PLUS Loan Request Form

Direct Loan Plus Application Form

The student financial aid award contains a Federal Direct PLUS Loan. The Federal Direct PLUS Loan is a federally sponsored loan that is available to the parents of dependent undergraduate students. It features low interest rates and long-term repayment options. While parents of all income levels are eligible, a credit-worthiness evaluation is required. Parents may borrow up to the cost of attendance minus any other aid received by the student annually, but can opt to borrow less than the amount awarded. All Federal Direct PLUS Loans are subject to an origination fee. This fee is deducted from the loan proceeds at the time funds are disbursed.

Application Process For a Federal Direct PLUS Loan

  • Student must have completed the 2014-2015 Free Application for Federal Student Aid (FAFSA) which is available online at http://www.fafsa.ed.gov.
  • A Federal Direct PLUS Loan Request Form is required for each PLUS loan request.
  • The Louisburg College Financial Aid Office will transmit the loan request to the U.S. Department of Education, where a credit check will be performed to determine approval or denial of loan.
  • If the PLUS loan is approved, the borrower will receive a disclosure statement that will indicate the loan amount and estimated date of disbursement. If the loan is denied, the borrower will receive notification of this decision, and appeal options. The student may be eligible for additional unsubsidized student loan funds to be determined by Financial Aid Office.
  • If the parent is a first-time Federal Direct PLUS borrower or has not borrowed from the Federal Direct PLUS program within the last 12 months, the borrower must sign a Master Promissory Note (MPN) at www.studentloans.gov.
  • Signer of the PLUS MPN must match borrower information submitted on this form. To sign the MPN electronically, parent borrower must have a Federal PIN. The student PIN cannot be used.

Federal Direct PLUS Loan Disbursement Process

  • Once all of the student's financial aid and College requirements are met, Federal Direct PLUS loan funds will be electronically transmitted from the U.S. Department of Education and disbursed to the student's account.

Federal Direct PLUS Repayment Information

The Federal Direct PLUS Loan is a financial obligation which must be repaid. Please remember the following:

  • Repayment of the PLUS begins 60 days after the last disbursement for the loan period borrowed or the last date of attendance. Check with your loan servicer for deferment options on loan repayment.
  • For Federal Direct PLUS Loans to be used for deferment purposes on a student bill, the U.S. Department of Education must have confirmed receipt of a signed, active and valid Master Promissory Note from the borrower at least 10 business days prior to your student payment deadline. Keep this deadline in mind and be prompt in signing your Master Promissory Note with the U.S. Department of Education.
  • The interest rate for Federal Direct PLUS Loans issued after July 1, 2006 is fixed at 7.9%.
  • Under the standard repayment plan, the minimum monthly payment on a Federal Direct PLUS loan is $50 per loan, allows up to ten years to repay the loan, and there is no prepayment penalty.
  • If the borrower is unable to make loan payments during the repayment period, contact your loan servicer. Borrower may be eligible for a deferment or forbearance which allows postponement of payment under certain government-approved situations.
  • Check with your loan servicer for other repayment options.

Direct Loan Plus Application Form