aid - federal parent PLUS loan
PARENT PLUS LOAN
Parents may borrow a Federal PLUS loan to assist with educational expenses. The interest rate is a fixed 8.5% (for all PLUS loans disbursed after July 1, 2006).
- Parent is responsible for repayment of the loan.
- Repayment begins up to 60 days after disbursement of the entire loan amount.
- Borrower must meet minimal credit requirements (no adverse credit).
- If a parent is denied a PLUS Loan based on adverse credit a student may become eligible for an additional unsubidized Federal Stafford Loan. Please contact the Financial Aid Office for more information.
CARROLL ELIGIBILITY
To receive a Federal Parent PLUS loan at Carroll College, the following conditions need to be met:
- The student must be accepted for admission as a degree-seeking student at Carroll College.
- The student must have accepted their 2008-09 financial aid award.
- The student must be enrolled for at least half-time (6 or more credits).
- The student must be a dependent student.
- A Master Promissory Note must be on file for the borrower.
- A PLUS Loan authorization form must be completed each year.
LENDER CHOICE
To review a comparison listing of some PLUS Loan lenders, CLICK HERE. If you choose a lender not on the list contact the lender directly to determine your next steps and contact our office to provide us with the lender contact information.
Factors to consider when choosing a lender:
Weigh the back-end benefits carefully. Interest rates are federally determined, so it's important to think about how the lender will treat you when it is time for repayment.
Do not be taken by dazzling marketing. Some lenders send out expensive marketing pieces, but that does not mean they are the best choice for you. Plus, that expensive marketing has to be paid for somehow.
Be wary of e-mail. If you receive email offers that sound too good to be true, they probably are.
Consider your local lender/banker. Over the years, Carroll College has developed solid working relationships with many local lending institutions that specialize in helping students and parents understand their guaranteed student loans and the many repayment options.
Factors considered in the development of the Carroll College list of Federal Family Educational Loan Program (FFELP) Stafford Loan and Parent PLUS lenders:
- Borrower benefits
- Origination fees
- Opportunity for forbearance or postponement of payment
- Marketing practices
- Source and stability of capital used in providing loans
- Mergers and acquisitions in past five years
- Commitment to debt management and default aversion
- Reputation at the local, state, regional and national levels
- Default rates
- Mission statement
- Demonstrated security of borrow information
- Ease of application process
- Web-based application and services
- Proactive customer communication
- Timely and responsive processing
- Knowledgeable customer service representatives
- Loan consolidation services and options
QUESTIONS?
Please contact us at fao -is-at- carroll -dot- edu.