Federal Direct PLUS (Parent) Loans

Criteria: Available to parents with good credit histories to pay the educational costs of their dependent students.  Students must be enrolled at least half time in the semester in which the loan is received.  For an undergraduate student, the minimum number of billable credits to be considered half time is six.  Students must also meet the Satisfactory Progress Policy requirements.

Amount: Variable up to cost of attendance.

Interest and Fees: For loans disbursed on or after July 1, 2013:

Interest rate: fixed at 6.41 percent

Loan origination fee: 4.288 percent of amount borrowed.  The fee is deducted prior to disbursement, so the actual amount received will be less than the amount to be repaid.

Federal Servicing Centers: The US Department of Education contracts with multiple centers to provide service for the Federal Direct Loan Program.  Once the first Direct Loan is received, borrowers will be contacted by the servicer for that loan.  The loan servicer will provide regular updates on the status of the Direct Loan, and also on any subsequent  Direct Loans that are received.  To confirm which center is servicing the loan, log onto the National Student Loan Data System.  To view the current servicing centers contracted by the Dept of Education, click here.

Repayment:

Standard—principal begins 60 days after the final loan disbursement.
Deferred—principal begins after the student graduates, leaves school, or drops below half-time enrollment. Accruing interest could either be paid monthly, quarterly, or be capitalized quarterly.

Other: For additional information, please visit the Department of Education's website and click on the Direct Loan Basics for Parents.

More Information 

Michigan Technological University participates in the William D. Ford Direct PLUS Loan Program.  This program allows a parent of a dependent, undergraduate student to borrow directly from the U.S. Department of Education, through Michigan Tech.

To apply for a Direct PLUS Loan a parent must submit a completed application to Michigan Tech's Financial Aid Office.  This can be submitted electronically at StudentLoans.gov or by paper.  A separate application is required for each student for whom monies are being requested.

 

After the Financial Aid Office has verified the receipt of the student's Direct Loan Request Form and the eligible PLUS Loan amount, the data will be submitted electronically to the servicing center.  Upon receiving notification of approval, a promissory note may need to be completed.  If one is required, the Financial Aid Office will inform the parent once the note is available.  A Disclosure Statement will be provided by the servicing center indicating disbursement date(s), loan fees, and repayment information.