- Maximum amount: The difference between your total cost of attendance and the amount of other financial assistance you receive each year
- You must enroll on at least a half-time basis to receive a PLUS Loan for each term of the loan. Half-time for an undergraduate student is 6 credit hours per semester.
- Interest rate: Varies annually, with a maximum of 9 percent. Interest begins accruing once funds are disbursed
- Repayment: Several plans are available, but repayment begins when funds are distributed to your student’s school account unless you contact your federal loan servicer to request a deferment while your child is in school. You may obtain information about your federal loan servicer by logging into the National Student Loan Data System.
How to Apply:
To apply for a Direct PLUS loan, the borrower must log into studentloans.gov with his/her Federal PIN. For a Direct Parent PLUS loan, the parent borrower must log in with his/her FSA User ID and Password. Parent borrowers click on the “parent borrowers” tab and then “Apply for a PLUS loan.” Once logged in, you will choose the option “Request a Direct PLUS Loan,” and then your loan type (“Parent PLUS” if you are the parent of a dependent undergraduate student or “Graduate PLUS” if you are a Graduate/Professional student).
It is imperative that all requirements are satisfied with UAB before a PLUS application is made through studentloans.gov. This checklist will help to guide you through the process.
You can choose a specific loan amount or request the “maximum amount allowed.” If the student plans to attend both fall and spring semesters, it is recommended that you request one loan to cover the entire academic year. Doing so avoids the need for reapplication.
The credit decision is made by the Department of Education, and is not based on a credit score, but on whether the borrower has “adverse credit.” This includes past due accounts, charged-off accounts, liens, bankruptcies, repossessions ,etc. Credit decisions are valid for a 180 day period. A PLUS loan approval does not ensure future PLUS loan approvals, as credit is reviewed at the time of each subsequent application. If your credit is not approved, you may:
- Appeal the decision through the application process at studentloans.gov.
- Have a credit-worthy endorser apply through studentloans.gov. An endorser is someone who agrees to repay the PLUS loan if you do not repay it.
- Choose to have the student borrow additional Direct Unsubsidized loan funds. If you do not intend to pursue Parent PLUS approval through one of the first two options above, the student can request additional Direct Unsubsidized loan funds. A Freshman or Sophomore may receive up to an additional $4,000 per academic year and Junior or Senior may receive up to an additional $5,000 per academic year.
PARENT PLUS ONLY
TREATMENT OF EXCESS FUNDS (REFUNDS):
During the application process, you will be asked how you would like the treatment of excess funds to be handled. If you choose 'send to student,' UAB Student Accounting Services will send the excess Parent PLUS funds to the bank account on file in BlazerNET. If you choose 'send to borrower,' UAB Student Accounting Services will mail a check to the parent borrower’s address, if the refund is a result of the PLUS loan.