Federal Direct Parent PLUS Loans
What is a Federal Direct Parent PLUS Loan?
The Federal Direct Parent PLUS Loan is one that a parent can utilize to help pay for a student's educational expenses. This loan is for parents of dependent, undergraduate students who are enrolled at least half time (six credits or more). These loans are processed through the U.S. Government. Parents must be credit-worthy and have no adverse credit history.
How much money can my parent borrow?
Parents can borrow up to the cost of attendance (COA) for the year, minus any other financial aid you receive.
What if my parent is not approved for the PLUS Loan?
If a parent borrower is not approved for the PLUS Loan, the student will be eligible to receive more Direct Unsubsidized Loan funds. Students will be notified of this additional award by the Student Financial Services Office.
How does my parent apply?
Parents must apply online by signing in to complete the PLUS request process. Parent borrowers should be certain to complete a Master Promissory Note (MPN).
How do I receive my loan funds?
Loan funds are disbursed in two or more disbursements directly to Iona College student accounts. The Federal Government deducts a 4.264% origination fee from the loan proceeds prior to disbursement.
What is the interest rate?
Federal Direct PLUS Loans disbursed after July 1, 2014 will have a fixed interest rate of 7.595%. Parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid off.
What are the repayment terms?
Payments are generally required on this loan while the student is in school and begin after the loan is fully disbursed for the year, but can be deferred until six months after the student graduates, leaves school, or is enrolled for less than six credits. If payments are deferred during the in-school period and/or the six month post-enrollment period, parents will receive quarterly interest statements and have the option to pay the accrued interest. If such interest payments are not made, any unpaid accrued interest will be capitalized (added to the principal loan balance) at either the end of the in-school deferment or, if taken, the end of the six-month post-enrollment deferment, increasing the overall loan costs.