PLUS Loan Information

2009-2010 Federal PLUS Loan Request Form

A PLUS loan is a federal Parental Loan for Undergraduate Students. A parent can borrow a PLUS loan for an amount up to the full cost of attendance less any financial aid including student loans. Eligibility is based on a satisfactory credit history. If borrowing for the first time, a parent must complete a Master Promissory Note (MPN). There are two programs from which the loan can be borrowed. They are:

 The William D. Ford Federal Direct Loan Program  (Direct)

-or-

The Family Federal Education Loan Program (FFELP)

In order to borrow from either program, a parent must complete and submit to our office the 2009-2010 Federal PLUS Loan Request Form. Please fax the completed form to us at 207-859-4122 or mail it to Student Financial Services, Colby College, 4130 Mayflower Hill, Waterville, ME  04901-8841.

 
William D. Ford Federal Direct Loan Program (Direct)

The lender for this program is the U. S. Department of Education. The following applies to Direct PLUS Loans borrowed during the 2009-2010 year:

  • Loan fees will be 2.5% after a rebate (to maintain eligibility for the rebate, the borrower must make 12 initial on-time payments).
  • The interest rate is 7.9% fixed.
  • Standard repayment term is 10 years. In some cases, a borrower may be eligible for extended or graduated repayment terms.
  • Loans will appear as "tentative" on the student account when we receive the completed 2009-2010 Federal PLUS Loan Request Form.
  • If a parent borrows from the this program and supplies us with an email address, we can send them the web address to complete the Master Promissory Note (MPN) electronically.
If seeking to consolidate federal loans, Direct Loan is the only lender currently participating in the Federal Loan Consolidation Program.
 

The Family Federal Education Loan Program (FFELP)

There are various lenders for the FFELP Program. Colby recommends borrowing from the same lender each year, when possible, for ease of repayment. Parents who have borrowed a PLUS Loan in the past  and wish to continue borrowing from the same lender, must verify the lender is still participating in federal loan lending. Please note: TD Banknorth HELPP and MES HELPP (Maine Education Services) are no longer participating in FFELP. 

The following applies to FFELP PLUS Loans borrowed during the 2009-2010 year:

  • Loan fee may be up to 4%.
  • The interest rate is 8.5% fixed.
  • Standard repayment term is 10 years. In some cases, a borrower may be eligible for extended or graduated repayment terms.
  • FFELP loans may not appear as "tentative" on the student account and reduce the balance due until funds are received from the lender.

FFELP lenders may offer borrower incentives or benefits, but due to the wide range of  programs, we are unable to counsel parents about specific lenders' incentives or benefits. The borrower is responsible for ensuring that all loan requirements are met with the lender in a timely manner to allow disbursement of funds to the college before the due date.

Parents must supply  the lender code on the 2009-2010 Federal PLUS Loan Request Form in order for us to process a FFELP loan. Elm Resources (not a lender) facilitates the processing of federal student/parent loans from many lenders and can be found on-line at www.elmresources.com. We encourage FFELP borrowers to set up an account with Elm to help research and process their loan.