A PLUS loan is a federal Parent Loan for Undergraduate Students. Beginning July 1, 2010, the U.S Department of Education became the only lender of these loans through the Federal Direct Loan Program (FDLP). A parent can borrow a PLUS loan 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 noncitizens, 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 Ed, not Colby. We will process PLUS loans for the 2016-17 school year after June 15, 2016 until May 1, 2017, 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 studentloans.gov under the Parent Borrowers tab.
- 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 2016-2017 year, the date range for the full year is 9/6/2016 to 5/15/2017. 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 9/6/2016 to 1/27/2017. The date range for the spring semester is 2/1/2017 to 5/15/2017.
- We encourage parents to review the PLUS counseling link at studentloans.gov for important rights and responsibilities.
The following applies to Federal Direct PLUS Loans borrowed during the 2016-2017 year:
- Loans with a first disbursement date on or after October 1, 2015, and before October 1, 2016, have a 4.272% loan fee deducted. For loans that have a first disbursement date on or after October 1, 2016, and before October 1, 2017, a loan fee of 4.276% will be deducted.
- The interest rate for a PLUS Loan first disbursed on or after July 1, 2016, and before July 1, 2017, is 6.31% fixed.
- Standard repayment term is 10 years. In some cases, a borrower may be eligible for extended or graduated repayment terms.
Last updated: September 1, 2016 at 10:49 am