NEW: How to Apply for a Federal Parent PLUS Loan Starting Fall 2023

Parent PLUS Loan Applications will be completed and submitted for the 2023-2024 aid year using the PLUS Loan Application on the Federal Student Aid website beginning April 2023!

(A Pace University application is still required for the Spring and Summer semesters of 2023)

The Federal Direct Parent PLUS loan is a credit-based, unsubsidized, federal education loan for eligible parents of dependent, undergraduate students. To ensure the Parent PLUS loan will be available for the start of the semester, the below steps must be completed a minimum of two (2) weeks before the bill due date.

To apply for a PLUS loan beginning in Fall 2023, follow the steps below:

  1. You, the parent borrower, and your student must log into their MyPace Portal and accept the Parent PLUS Loan offer to confirm the amount you wish to borrow.
    • Plus Loan eligibility is determined by using the student’s Cost of Attendance minus other aid (total of gift aid and accepted student loans).
  2. Eligible parents/step-parents/adoptive parents of dependent, undergraduate students must complete the Federal Parent PLUS Loan Application and consent to obtain a credit report on the Federal Student Aid website.
    • You, the parent borrower, will need:
      • Your unique FSA ID.
      • Your and your student's social security number.
      • Decide if you are securing a loan for the entire Fall 2023/Spring 2024 academic year or for a specific Fall 2023 only or Spring 2024 only term.

The Department of Education’s Common Origination and Disbursement Center (COD) will notify the parent via mail/email if they are credit approved or denied.

  • If the loan is credit-approved, the parent borrower must complete a PLUS Master Promissory Note (MPN) for Parents using their FSA ID.
    • The PLUS MPN for Parents for the 2023-2024 academic year will be available to complete beginning April 2023.
    • For assistance with completing this MPN please call (800) 557-7394.
  • If the loan is credit-denied:
    • The parent borrower may follow the directions included in the credit decision notification to seek an endorser or appeal the credit decision.
    • Or, the student may be eligible for an additional Direct Unsubsidized loan of $4,000 for students with 0-64 completed credits (Freshman/Sophomore), or $5,000 for students with 65+ credits completed (Junior/Senior).

Should the parent borrower wish to make any changes to their approved Parent Plus loan (increase, decrease, cancel, etc.) they must complete a Loan Change Request form. Once an original Parent Plus loan application is credit-approved, you do not need to submit a new application.

When applying for a Parent PLUS loan please consider:

  • If a parent borrower is applying for a PLUS loan to finance off-campus, non-Pace University housing, they must provide the Financial Aid Office with a copy of their completed, lease agreement, signed by all parties, with the student listed as a lessee, prior to submitting the loan application.
  • If you have borrowed a Federal Direct PLUS loan for the same student at a different school in the past, you may not need to sign a new Master Promissory Note (MPN).

IMPORTANT INFORMATION REGARDING FEDERAL DIRECT PARENT LOANS (PLUS)

  • Your parent must be a US citizen or permanent resident to apply for this loan.
  • It is not guaranteed and is subject to credit approval.
  • The current interest rate on a Direct PLUS loan is 7.54%.
  • The amount of the loan disbursed will be reduced by the origination fee, which is currently 4.228%. Both rates are subject to change.
  • Payment on a Direct PLUS loan can be deferred until six months after the dependent student (for whom the loan is borrowed) graduates or falls below half-time (six credits) by contacting the servicer of the loan.

Details

Article ID: 11288
Created
Tue 11/29/22 10:58 AM
Modified
Tue 11/29/22 10:59 AM