Federal Direct PLUS Loan
The Federal Direct PLUS Loan enables parents to borrow to pay the educational expenses of each child who is a dependent student enrolled at least half time. The parent is the borrower for this loan program.
To be eligible for a PLUS Loan you must:
- Pass a credit check
- Meet citizenship requirements
- Student must be enrolled at least half-time in a degree seeking program
How to Apply:
For preapproval and application, you can go online to complete a Master Promissory Note (MPN). Click on the option to complete PLUS Request Process. You can use your FAFSA PIN number to electronically sign the promissory note. You will also need to complete a PLUS Loan Authorization form before Augustana can process your loan.
Terms of the Loan:
Interest: Interest rate on the Direct PLUS loan is fixed at 7.9%. Interest begins to accrue at the time of first disbursement.
Loan Limits: The yearly limit is equal to the cost of attendance minus any other financial aid the student receives.
Repayment: Effective July 1, 2008, parents may choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. There is no penalty for paying the loan in full early.
For more details about the Parent PLUS Loan, go to the U. S. Department of Education's Direct Loan information brochure.