Direct Parent Plus Loan

Federal Direct Parent PLUS Loan Program

Direct Parent PLUS Loans enable parents to receive funds from the U.S. Department of Education, to pay for their child’s college education. To apply for a PLUS Loan, parents may request a PLUS Loan Application from our Financial Aid Office, or download an application from our website.

PLUS Loan eligibility requirements:

• Student must be a dependent student who is enrolled at least half-time (6 credit hours)
• Parent must be the biological or adoptive parent of the student for whom they are borrowing
• Parent cannot have an adverse credit history (a credit check will be done)
• Both the parent and student must not be in default on any federal education loans or owe an overpayment on a federal education grant.
• Both the parent and student must be U.S. citizens or eligible noncitizens.

How do I apply for a Direct Parent PLUS Loan?

To apply for a Direct Parent PLUS Loan, you will need to complete a PLUS Loan Application (applications can be picked up in the school financial aid office, or printed off our website. Also, your child will need to complete the Free Application for Federal Student Aid (FAFSA), prior to the PLUS Loan Application being processed.

Is there any other paperwork that needs to be completed?

If the application is accepted, a parent must complete a PLUS Master Promissory Note (MPN), before the loan can be disbursed. The MPN can be completed online at, www.dlenote.ed.gov . Parents will sign the MPN electronically with the 4-digit PIN number they used to sign their child’s FAFSA. If parents are unable to complete the MPN online, they may contact the Financial Aid Office, and request a paper copy.

Master Promissory Note (MPN) -an agreement signed by the parent, promising to repay the entire loan amount that is borrowed, along with any interest that accrues during this time. Parents will need their Department of Education PIN to electronically sign their MPN

How much can I borrow for the academic year?

There is not a set limit for Direct Parent PLUS Loans; however the parent can’t borrow more than the cost of education minus any other financial aid received, such as Pell, TAP, Direct Subsidized and/or Unsubsidized Loans. The school can help the parent determine the actual amount they may borrow.

What is the interest rate?

The interest rate for a Direct Parent PLUS Loan is a fixed rate of 7.9%. Interest accrues on the loan during all periods, beginning on the date of your loan’s first disbursement.

Is there a charge for this loan?

Yes, in addition to the interest, parents pay a loan fee of 4% of the principal amount. This fee is deducted before any loan money is received, so the loan amount you receive will be less than the amount that will be repaid.

How is the loan money received?

The school will apply the loan to any outstanding tuition and fees that the student has incurred (Pell, TAP, Subsidized and Unsubsidized Loan money will be applied to student’s charges first). The PLUS Loan will then be applied to the remaining charges. If there is additional loan money left over, a refund check will be mailed to the parent’s permanent mailing address. Note: If the parent would like the remaining loan money disbursed to the student’s account, they can make arrangements through the Bursar’s Office, (315)866-0300 ext 8309. For specific timeframes regarding disbursements or parent refunds, please see the “Disbursements” link below.

Disbursements

When do I begin repaying the loan?

Parents must begin repaying their Direct Parent PLUS Loan 60 days after the loan has been fully disbursed.

How long will I have to repay the loan, and what are the repayment options?

Depending on the repayment option that is chosen, parents generally have 10-25 years to repay their PLUS Loan.

Repayment Options:

• Standard Repayment Plan- Fixed monthly payments for up to 10 years.
• Extended Repayment Plan- Fixed monthly payments over a period of time, not to exceed 25 years.
• Graduated Repayment Plan- Payments that start off lower at first, and the gradually increase, usually every 2 years.

Can I ever postpone making loan payments?

Yes under certain circumstances you may qualify for a deferment or forbearance.

Examples:

• Parent returns to school at least half-time
• Parent is unemployed and qualifies for economic hardship
• Parent is serving on active duty during a war or other military operation.

If parents don’t qualify for a deferment but are temporarily unable to make payments, they may qualify for a forbearance.

Deferment Request Form

Forbearance Request Form

Who do I contact for additional information?

Herkimer County Community College
Financial Aid Office
100 Reservoir Rd
Herkimer, NY 13350
Phone: (315)866-0300 ext 8282
Toll Free: 1-888-GO-4-HCCC
Fax: (315) 866-0062
Email: finaid@herkimer.edu

General Information about Direct Parent PLUS Loans and applying for them

Federal Student Aid Information Center
1-800-4-FED-AID
www.studentaid.ed.gov

Information on repaying your Direct Parent PLUS Loan

Borrower Services
Direct Loan Servicing Center
1-800-848-0979
www.dl.ed.gov

Information on Consolidating your Direct Loans

Direct Loan Consolidation Center
1-800-557-7392
www.loanconsolidation.ed.gov