Federal PLUS Parent Loan

The Federal Parent Loan for Undergraduate Students (PLUS) is a loan your parents can take out to pay for your education expenses. It was created by the federal government to help parents or stepparents with good credit histories to pay for their dependent student’s college costs. You must be a dependent undergraduate student enrolled at least half time. PLUS loans are funded by banks, savings and loans, and credit unions under the Federal Family Education Loan Program.

Interest Rate

PLUS Loans for parents made on or after July 1, 2006 will change to a fixed rate of 8.5%. PLUS Loans for parents made on or after July 1, 1998 through June 30, 2006 will maintain a variable interest rate adjusted each July 1, capped at 9.00%. The variable rate for these loans will be 8.02%.

The interest rate for the Fall 2008 - Spring 2009 academic year is:
Fixed 8.5% while in school and during grace-period
Fixed 8.5% during repayment

Deadline to Apply

Fall only loan: Dec. 1, 2008
Academic year or Spring only loan: May 1, 2009

Repayment Information

Repayment on a PLUS loan begins within 60 days of the loan being fully disbursed. The lender will determine the repayment schedule. The borrower may have the option to request for a forbearance to defer payments while the student is in the school. Please check with your lender if this available.

Maximum Amount

You may borrow up to the Cost of Attendance (budget) minus other financial aid the student has been awarded.

Enrollment Requirements

A student must be continuously enrolled for at least six units (half-time enrollment) each semester as an undergraduate to receive the loan. If the student drops below half-time at any time during the loan period, he/she will not be eligible for the loan proceeds. Disbursements arriving after the end of the term will be returned to the lender if the student has not received satisfactory grades for the minimum number of units required. Unsatisfactory grades are as follows: F,I,U, RD,NC,AU,WU and W.

Disbursement of Loan Proceeds

Upon approval, your lender will send the PLUS funds directly to SJSU through the Electronic Funds Transfer (EFT) process. The funds will be credited to the student’s account balance and any excess will be refunded to the parent. All loans are issued in one disbursement per semester. The second disbursement will arrive at the beginning of the Spring semester for an academic year loan.

PLUS Loan Application Process

Step 1: Choose a lender

Choose a lender. We encourage you to research each lender's benefits and programs.

Step 2: Call the lender

Call the lender's 800 number to obtain a pre-approval or denial by phone. (If you are denied a PLUS loan, your dependent student may be eligible for additional loan funds). Contact the Financial Aid Office for additional information.

Step 3: Electronic notice

SJSU will receive an electronic notice of your pre-approval or denial from your lender.

Step 4: Electronic certification

SJSU will electronically certify your eligibility and the maximum amount you may borrow based on the student’s financial aid award notice.

Step 5: Complete Master Promissory Note (MPN)

EDFUND, the California State Loan Guarantor, will send you an MPN to complete and return to the lender of your choice.

Step 6: Disbursement

The loan funds will be credited to the student’s account balance and any excess will be refunded to you the parent.

Additional Information

The student must have an award notice from the Financial Aid Office in order for SJSU to certify the PLUS loan. Please do not apply for the PLUS loan prior to your student being awarded.

Summary

Who Can Apply?

Parents of undergraduates only

Application:

PLUS Loan application &
Promissory Note

Interest Rate 2007-2008:

8.5% fixed rate while in school and during grace period
8.5% fixed rate while in repayment

Repayment:

60 days after the final loan disbursement for the period of enrollment

Loan Limits(annual):

The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive

Lenders:

banks, savings and loans, and credit unions under the FFEL Program. Click here to choose a lender.

Loan Periods:

Fall, Spring, Summer

Required Actions:

Entrance Loan Counseling for first time borrowers

Disbursement:

begins first week of classes

Deadline to Apply:

Fall only loan: Dec 1, 2007
Academic year or
Spring only loan: May 1, 2008

Did you know

Financial Aid & Scholarship Office

One Washington Square
San José, CA 95192-0036
408-283-7500
fao@sjsu.edu
Fed. School Code: 001155

Financial Aid Map Location