2011-2012 Federal Direct Parent PLUS Loans
A Federal Direct 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 credits each semester.A parent may borrow up to the total estimated cost of attendance less resources and all other financial aid received by the student. The interest rate is fixed at 7.9 percent. Interest begins to accrue when the loan funds are sent to the university and continue to accrue until the loan is paid in full.
A FAFSA application is required, even if the Federal Direct Parent PLUS loan is the only financial aid you want to use. If the FAFSA application is selected for verification, all required documents must be submitted before the PLUS loan can be processed. Also, you must complete both steps in the Parent PLUS loan process before the loan funds can be disbursed.
Please visit the Cost Calculator to determine the amount you wish to borrow or contact our office for assistance.
Apply For a Federal Direct Parent PLUS Loan
- Step 1: If you have not already completed a PLUS Master Promissory Note (MPN) click here to be linked to studentloans.gov to complete this step of the process. Please note: you must complete a separate MPN for each student.
- Step 2: Complete the Paper Federal Direct Parent PLUS Loan Application for the correct year and submit it to our office. Please note: This step can not be completed on studentloans.gov and must be done using the application on our website.
In the event of a credit denial the student can apply for additional unsubsidized funds. Please be sure to complete the Student Request for Additional Unsubsidized Stafford Loan section of the PLUS Loan Application.
Credit Decision
The lender will perform a credit check to determine the parent borrower's eligibility. The lender will notify the borrower and UMBC regarding the credit decision.If Approved –
UMBC will process the application within the time frame specified on our website.
If Denied –
If requested, the student can borrow an additional amount in a Federal Direct Unsubsidized Stafford Loan. The student whose parent has been denied for a Parent PLUS Loan will now have the independent student's annual maximum loan limit eligibility.