Federal Plus Loans
Federal PLUS loan is a low interest loan program for parents of eligible dependent undergraduate students. The amount parents may borrow is the Cost of Attendance (COA) minus any other aid (grants, scholarships, loans and work-study) the student will receive for the academic year. Parent must begin repaying both principal and interest within sixty days after the loan is disbursed. The current interest rate is 7.21%
To apply for a parent PLUS Loan, The parent must complete the Federal PLUS online at www.studentloans.gov for summer school or for the academic year.
Eligibility Requirements for Parent PLUS Loan:
- Student must have a Free Application for Federal Student Aid (FAFSA) for the current academic year and if selected, must have completed the verification process.
- Student must be enrolled at least half-time.
- Student must be maintaining Satisfactory Academic Progress (SAP.)
- Student must not be in default on any Federal Loans or owe an overpayment on Federal grants.
- Student must be registered with selective service.
- Student must be a US citizen or eligible non-citizen.
- Parent must be the student’s natural parent, adoptive parent or in some cases, stepparent. Grandparents and legal guardians are not considered parents, as defined by the Department of Education and are not eligible to apply for a PLUS loan.
- Parent must be a US citizen or eligible non-citizen.
- Parent must have a credit check performed and approved by the US Department of Education.
- Parent must sign a Master Promissory Note (MPN) at www.studentloans.gov. The MPN allows the parent to receive additional funding (within eligibility) without signing another note, unless your previous loan was approved with an endorser or your son/daughter stopped attending school for one full year.
The PLUS Loan Application Process "New"
Effective beginning with Summer 2015, The PLUS application process at NC A&T has changed. Please follow the link below for assistance in completing the Federal PLUS Loan online.
Parents should start the application process early to meet the fall semester payment deadline. Parent must complete the Federal Direct PLUS loan application online at www.studentloans.gov. Your information will be processed and sent to the federal processor Common Origination and Disbursement (COD) School Relations Center. A credit check will be performed by COD to determine approval or denial of the loan. After a credit check decision has been dteremined, COD will notify the parent borrower and the school within 2-10 business days. If the loan is approved, the parent borrower should sign the MPN if needed at www.studentloans.gov. Reveiw item #10 above. If the credit is denied, the parent borrower may add an endorser (credit worthy co-signer).
If no endorser is added to a credit denied loan, additional Federal Direct Unsubsidized Loan will be offered to the student. Students may decline the additional Unsubsidized loan on Aggie Access or by submitting a written request to the Office of Student Financial Aid.
We encourage the parent to plan ahead and borrow the full amount needed for the year and have the amount disbursed in two payments rather than reapplying each semester. This arrangement expedites the process and can also defer loan repayment, since repayment begins 60 days after the final loan disbursement is made for the year.
PLUS loan funds are electronically disbursed to the student’s account to pay allowable charges (tuition, fees, room & board) and other non-institutional charges such as books, Health Center charges, library fines, late registration fees, and any minor prior year charges to be paid. If you are borrowing for the academic year, your loan will be disbursed in two equal payments at the start of each term. If you are borrowing a loan for one-semester, the first disbursement will be at the beginning of the semester and the second disbursement after the mid-point of the semester.
There is a combined origination and insurance fees of 4.2929%. Fees are deducted from the loan amount.
You have the right to cancel or reduce your loan within 14 days of disbursement. If you chose to cancel the loan after disbursement, you will be responsible for any unpaid balance due to the University. The University has the right to refuse cancellation of your loan after the 14 days unless the balance is paid in full. If a refund is created based on the PLUS Loan Disbursement, it will be issued to the parent unless otherwise indicated by the parent on the PLUS Loan Data Sheet. A paper check is mailed to the address provided by the parent on the PLUS Loan Data Sheet.
Additional information about the Federal PLUS Loan program may be found at PLUS Loan Basics.
Graduate PLUS loans
Graduate students may borrow up to their cost of attendance, less any other aid for the academic year. The current interest rate is 7.21%. Graduate students are required to complete the Graduate PLUS Loan online at www.studentloans.gov.