Parents of dependent students may apply for a Direct PLUS Loan to help pay their children's education expenses as long as certain eligibility requirements are met.

 

Eligibility

To be eligible for a Direct PLUS Loan for Parents:

  • The parent borrower must be the student's biological or adoptive parent. In some cases, the student's stepparent may be eligible.

  • The student must be a dependent student who is enrolled at least half-time at Cuesta College. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, or a ward of the court.

  • The parent borrower must not have an adverse credit history (A credit check is conducted when you begin the loan application process). If the parent does not pass the credit check, the parent may still receive a loan if someone (a relative or friend) is able to pass the credit check and agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so.

  • 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 a federal education grant, and must meet other general eligibility requirements for the federal student aid programs.

  • The Direct PLUS loan program requires that parents reapply each year if they wish to borrow more funds

  • Cuesta College whose parents do not qualify for a Direct PLUS loan and receive a denial may borrow additional federal unsubsidized Direct loan funds by submitting a copy of their denial notification to the financial aid office at Cuesta College.

 

PLUS Loan 2013-2014 Terms and Conditions

Interest rate: 6.41% fixed  


Origination fees: for loans first disbursed on or after July 1, 2013, loan fees of 4.204% are deducted from each disbursement.


PLUS Loan Repayment: For parents of undergraduate students repayment begins within 60 days after your loan is fully disbursed and lasts ten years. Parent borrowers may contact the Direct Loan Servicing Center to request deferment of monthly payments while the student is in school.

Other Terms / Conditions: 

  • Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.

  • Parents will specify the loan amount they wish to borrow on their PLUS loan request and their PLUS Master Promissory Note. Generally, a parent can borrow up to the Cost of Attendance less any other financial aid the student is receiving.

 

Parent PLUS Loan Application Process

1)      Complete the FAFSA

2)      Complete PLUS credit application and PLUS Master Promissory Note

 

Parent PLUS Loan Credit Denial

If a parent borrower has applied for the Federal Parent PLUS and is denied, the student may borrow additional funds through the Additional Federal Stafford Unsubsidized Loan Program, up to the following maximums:

Dependent Students

Annual Additional Unsubsidized Loan Limit

Undergraduate First and Second Year

$4,000

Undergraduate Third Year and Beyond

$5,000