A parent can borrow a Federal Direct Parent PLUS loan (Parent Loan for Undergraduate Students) for an amount up to the full cost of attendance less any financial aid including student loans. The student and parent must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans, or owe an overpayment on any federal grant. The parent borrower must not have an adverse credit history as determined by the Department of Education, not Colby. We will process PLUS loans for the 2022/23 school year after June 20, 2022 until May 1, 2023 for full-time, continuing students. In order for a parent to apply for a PLUS Loan:

  • Students must first complete a Free Application for Federal Student Aid (FAFSA).
  • We request that students make a decision about borrowing a Federal Direct Subsidized/Unsubsidized Loan (using the Federal Loan Request Form) before parents pursue a PLUS loan. Colby will process the Federal Direct Subsidized/Unsubsidized Loan before processing the Direct Parent PLUS Loan.
  • Parents interested in borrowing must “Request a PLUS Loan” at studentaid.gov.
  • First-time parent borrowers will be instructed by Colby when to complete the PLUS Loan promissory note.
  • Standard practice will be to process a PLUS loan for the full year, split evenly between the fall and spring semesters. For the 2022/23 year, the date range for a full year loan is 9/7/2022 to 5/15/2023. If students are studying away on an approved program with a different cost than Colby or attending for only one semester, single semester PLUS loans should be requested. The date range for the fall semester is 9/7/2022 to 1/26/2023. The date range for the spring semester is 2/1/2023 to 5/15/2023.
  • We encourage parents to review the PLUS counseling link at studentaid.gov for important rights and responsibilities.

The following applies to Federal Direct Parent PLUS Loans borrowed during the 2022-2023 year:

  • Loan with a first disbursement on or after October 1, 2020 and before October 1, 2023 will incur a loan origination fee of 4.228%.
  • The interest rate for a PLUS Loan first disbursed on or after July 1, 2022 and before July 1, 2023 is 7.54% fixed.
  • Standard repayment term is 10 years. In some cases, a borrower may be eligible for extended or graduated repayment terms.

 

 Private or Alternative Loan Information
When federal loans and other aid do not cover the cost of education, private or alternative educational loans are available. Private educational loan programs vary by lender. Colby does not have Preferred Lender Arrangements. Families who choose to borrow may select a loan product from any lender of their choosing and are encouraged to carefully compare loan terms and conditions including interest rates, origination fees and repayment terms before consummating a loan. For more information about private or alternative loans, CLICK HERE.

 

 

 

Last updated: June 14, 2022 at 11:31 am