Federal Direct Parent PLUS Loan

  • The Federal Direct Parent PLUS Loan is a credit-based loan with a fixed interest rate of 7.595%, with default and up front origination fees of 4.276% (beginning for 2018-19), loans disbursed after 10/1/18 may have a different origination fee. Students must be enrolled at least half-time in a degree seeking program, be meeting the Federal Academic Progress Standards (SAP), and have a completed FASFA on file for parents to access a PLUS loan.  The parent borrower must be either a biological or adoptive parent, or step parent.  Parent borrowers and their student must also be U.S. citizens or eligible non-citizens and are not currently in default on Federal aid.  Through the Federal Direct PLUS Loan Program, parents of dependent students may borrow up to the cost of education less any other financial aid received by the student. Repayment does not begin until 60 days after the loan is fully disbursed to the school (for a full-year loan, after the spring portion is disbursed to Pitt-Bradford).   You may indicate on your Federal Direct Parent PLUS Loan application that you would like an automatic deferment while your student is attending school and/or a request for a 6 month deferment post enrollment.  For additional information about the Federal Direct Parent PLUS Loan, please visit studentaid.ed.gov

    Please be aware, although the studentloans.gov website states you will hear from the school within 24 hours of submitting the application, we are not able to contact you until we receive the information from Federal Loan Servicing. We will process your loan record after it is received from Federal Direct loans. This processing time may take up to two weeks. Once your loan is processed, your student will receive a revised award letter via their Pitt email.

    If a parent is denied a Federal Direct Parent PLUS Loan, the student may automatically be considered for an additional unsubsidized Federal Direct Student loan in an amount up to $4,000/year for freshman and sophomores and up to $5,000/year for juniors and seniors.  Borrowers also have the option to either appeal the credit decision with the U.S. Department of Education or get an endorser for the loan by choosing the associated bubble on the results page after submitting your online Federal Direct Parent PLUS Loan application at studentloans.gov.

    If there is a Federal Direct Parent PLUS Loan denial and certification of additional unsubsidized Federal Direct Student loan has occurred, the same parent borrower or another parent borrower can later appeal or seek an endorser and be approved. If this is the case, the student’s additional unsubsidized Federal Direct Student Loan will be cancelled.

    Repayment Options: Additional information regarding repayment can be found at studentloans.gov.

    How to Apply: 

    1. First, complete the Free Application for Federal Student Aid (FAFSA).

    2. Then, calculate how much you want to borrow and determine the loan period. The total amount you can borrow is equal to your student's Cost of Attendance minus other Estimated Aid (these figures are listed on your student's Student Aid Summary on Pitt-Pay).

    3. Next, calculate the loan fee. Divide the total loan amount by 0.95724 (= 4.276%).
    Request $10,447 ($10,000/0.95724 = $10,447) to receive a total of $10,000

    4. Initiate a Federal Direct Parent PLUS Loan application and sign a master promissory note at https://studentloans.gov (if you have questions when on this site, you can reach a customer service representative at 1-800-557-7394).

    1. Once on studentloans.gov simply click on " Log In" on the left side of the page; A parent must sign in using FSA ID.
      *Note, do not use the student's FSA ID in this section*
       *Also, if you forgot or don't have a FSA ID, you can go to StudentAid.gov/fsaid for more information. 
    2. After the parent signs in, click on "Apply for a Direct PLUS Loan."
    3. Complete the required items then "submit" the PLUS Loan request.
    4. If you are credit approved you will then click on "Home" to return to the studentloans.gov homepage to continue to the next step of the Federal Direct Parent PLUS Loan process, which is signing a Federal Direct Parent PLUS Loan Master Promissory Note.
    5. Click on Parent Borrower box and choose "Complete Loan Agreement for PLUS Loan MPN." 
    6. Click on the START button to complete the Master Promissory Note (MPN).
    7. Complete the required items and then "Submit" the Master Promissory Note.

    If you have received an adverse credit decision, but are eligible due to documented extenuating circumstances or by obtaining an endorser, you will be required to complete Federal Direct Parent PLUS Loan Entrance Counseling.

    Please note that it can take approximately 2-4 weeks for a Federal Direct Parent PLUS Loan to be processed; parents are encouraged to file the application early to allow time for the loan funds to arrive at the school.

    Directions for Changing your Federal Direct Parent PLUS Loan: If you would like to change your Federal Direct Parent PLUS loan, the parent borrower must submit a written request to the Financial Aid Office.  Please be sure to sign the request and include a phone number where the parent borrower can be contacted.  If you would like to increase the Federal Direct Parent PLUS Loan and it is more than 180 days since the initial credit check was completed, the Parent Borrower will need to complete a new PLUS loan application at studentloans.gov.

    Federal Loan Servicers:  For questions about loan repayment or deferment, a borrower can contact his or her Federal Direct Parent PLUS Loan servicing center.  Not sure who your Federal loan servicer is?  Look it up on National Student Loan Database System, nslds.ed.gov or call the Federal Student Aid Information Center at 800-4-FED-AID.

    FedLoan Servicing (PHEAA)
    Phone: 800/699-2908
    TDD/TTY: 800/722-8189
    Overseas borrowers: 717-720-1985
    Web site: https://myfedloan.org

    Great Lakes Educational Loan Services, Inc.
    Phone: 800/236-4300
    TDD/TTY: 800/236-4300
    Overseas: 608/246-1700
    Web site: https://mygreatlakes.org

    Phone: 888/486-4722
    TDD/TTY: 888/486-4722
    Overseas: 303/696-3625
    Web site: https://www.nelnet.com

    Phone: 800/722-1300
    Fax: 866/266-0178
    International Phone: 317/806-0580
    International Fax: 570/706-8563
    TDD: 877/713-3833
    Web site: https://www.navient.com

    Phone: 888/866-4352
    Fax: 888/866-4708
    633 Spirit Drive
    Chesterfield, MO 63005

    298 N. Seven Oaks Drive
    Knoxville, TN 37922

    CornerStone - UHEAA
    60 South 400 West
    Salt Lake City, UT 84101-1284