Federal Direct PLUS (Parent) Loan

Students must have been awarded financial aid before an application can be submitted and processed. 

 

Deadline to submit Fall 2017 - Spring 2018 application:

  • December 1, 2017, for Fall only loans.
  • April 27, 2018, for academic year or Spring only loans.

The Direct PLUS (Parent) Loan is available to parents of dependent, undergraduate students who are attending at least half-time (6 units) each semester, and who have received a financial aid award.

Students who are auditing classes or taking classes for "no credit" are not eligible for any financial aid towards those registration fees.

Parents may borrow up to the Cost of Attendance (budget) minus other financial aid the student is awarded.

A credit check is processed within 5 business days when a PLUS (Parent) loan application is received. 

Direct PLUS (Parent) Loan Application Process:

Step 1: Student must have completed a FAFSA, must have submitted the requested documents on their MySJSU To-Do List, and have a Financial Aid award.

Step 2: Submit a 2017-2018 Direct PLUS (Parent) Loan applicationto the Financial Aid and Scholarship Office (FASO).

Step 4: FASO will electronically certify the loan eligibility and the amount borrowed based on the student's financial aid award.Step 3: Once the Direct PLUS Loan application is received, information is forwarded electronically to the Direct Loan Processor for a credit check. FASO will receive an electronic notice of approval or denial from the U.S. Dept. of Education. Click credit denial for more information. 

Step 5: A message will be sent to the student's MySJSU directing the parent whose name is on the PLUS loan application to sign the PLUS Master Promissory Note (MPN), if required. A new MPN is necessary if it has been more than 10 years since the last MPN was completing. PLUS Loan counseling is required if the parent has an adverse credit history, and is strongly encouraged (optional) for all parent borrowers.


Enrollment Requirements

Students must be continuously enrolled in at least six units (half-time enrollment) each semester as an undergraduate to receive the loan. If the student drops below half-time enrollment at any time during the loan period, and/or if the student has not received satisfactory grades for the minimum number of units required, he/she may not be eligible for the loan proceeds in the subsequent semester.


Disbursement of Funds

Disbursement of funds begins the first week of each semester. Academic year PLUS loans are disbursed to student's account in two equal installments - fall and spring. Financial Aid funds are applied towards any current outstanding debt owed to the university (i.e., tuition, campus fees, etc.). Remaining funds, if any, are refunded to the parent by the Bursar's Office. View the Bursar's Office Refund process for more information. 

Borrowing Guidelines

We strongly encourage all PLUS loan borrowers to use a repayment calculator to know the effects of loan indebtedness and estimate monthly payments ahead of time. 

The amount listed on the award letter is the maximum amount available*, but we encourage you to only borrow what is needed. The PLUS loan application will not be processed if a dollar amount is not listed.

*If federal Work Study (WS) is offered as part of the award package, you can add the offered WS amount to the PLUS loan amount. In this case, however, the federal Work Study will be cancelled. 

Repayment Information

The loan service provider will contact borrowers with regular updates on the status of your Direct PLUS loan and will provide you with information on how and when to repay your loan. Repayments generally begin 30-60 days after the second disbursement.

The Delayed Repayment Option: If requested, repayment can be delayed to begin six months after your student graduates or drops below half-time. You must request this by contacting the Direct Loan Service provider.

If a parent borrower is not a U.S. citizen or Permanent Resident Alien

If the parent borrower is not a U.S. citizen or permanent resident alien, they are encouraged to fill out the PLUS application. The application will be processed and your student may have access to more unsubsidized loans.