Federal Parent Plus Loans
A Federal Parent Plus Loan is a credit based loan that parents of undergraduate
students may borrow to help pay the educational expenses for their dependent
student. The student must be enrolled for at least six credit hours per
semester.
A parent may borrow up to the total of the estimated cost of attendance
less resources and all other financial aid received by the student. The
interest rate is fixed at 8.5 percent and accrues from the time the loan
funds are sent to the university until it is paid in full.
Apply For a Federal Parent Plus Loan
If a Federal Parent Plus loan is the only financial aid you desire,
the submission of a FAFSA is not required. It is suggested
however, that a FAFSA be submitted in order to be considered
for the most favorable aid for the student.
When you apply for a Plus Loan, you must also complete a Master
Promissory Note (MPN) before the loan funds will be disbursed. We
encourage you to fill out a loan application with one of UMBC’s preferred
lenders; however, you may choose any lender. Please be aware that
the use of non-preferred lenders may cause delays in the processing of
your loan.
Please visit Cost Calculator to determine
the amount you wish to borrow or contact our office for assistance.
Credit Decision
Approved
The lender will perform a credit check to determine the parent
borrower’s eligibility. If approved, the borrower and UMBC will
be notified and the loan will be processed by our office.
Denied
If denied the student can borrow an additional amount in a Federal
Unsubsidized Stafford Loan. The student must complete the Loan Decrease/Cancel Request
Form, also located on our web site under forms. The student
must submit the Loan Exception Form and the notification of
denial to our office for processing. The notification of denial
must identify the parent borrower.
The student whose parent has been denied for a Parent Plus Loan
will now have the independent student annual
maximum loan limit eligibility.
Repayment of Federal Parent Plus Loans
Repayment begins 60 days after the final loan payment is sent
to the institution. There are limited circumstances where a parent borrower
can defer payments of a Parent Plus Loan. Please contact your
lender for more information.
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