A parent can borrow a Federal Direct 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 2020/21 school year after June 19, 2020 until May 1, 2021 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 Student Loan (using the Federal Loan Request Form) before parents pursue a PLUS loan. Colby will process the Federal Student Loan before processing the 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 2020/21 year, the date range for the full year is 9/9/2020 to 5/17/2021. 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 9/9/2020 to 1/28/2021. The date range for the spring semester is 2/3/2021 to 5/17/2021.
- We encourage parents to review the PLUS counseling link at studentaid.gov for important rights and responsibilities.
The following applies to Federal Direct PLUS Loans borrowed during the 2020-2021 year:
- Loan with a first disbursement on or after October 1, 2019 and before October 1, 2020 will incur a loan origination fee of 4.236%.
- The interest rate for a PLUS Loan first disbursed on or after July 1, 2020 and before July 1, 2021 is 5.30% fixed.
- Standard repayment term is 10 years. In some cases, a borrower may be eligible for extended or graduated repayment terms.
- If a PLUS Loan creates a credit balance (overpayment) on the Student Account, refund will be issued payable to the parent borrower.
Last updated: May 29, 2020 at 11:45 am