The Parent Plus Loan program allows parents to borrow on behalf of their dependent undergraduate students. The maximum amount available is determined by the amount of the student's cost of education minus other financial aid.
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General Information
Parents of undergraduate dependent students may apply for a Federal Direct Parent PLUS Loan online using the instructions below. The online application process includes a credit check by Direct Loans. The yearly limit is the student’s cost of attendance minus any other financial aid received (this includes loans, grants, federal work-study, and scholarships). The parent may apply for funds to pay tuition, fees, and student's living expenses.
Once the loan is approved, the loan will be added to the student's MyUB portal as anticipated financial aid. The loan should disburse on the first day class to any outstanding balance due to the university, with the excess funds refunded to the student or the parent (as indicated on application). If the refund to parent option is chosen, a check is mailed to the parent borrower address. If the refund to student option is chosen, a check mailed to the student's permanent address.
The loan rate is fixed, currently set at 7.9%. Repayment of the loan generally begins sixty days after the final loan disbursement for each academic year unless the parent requests a deferment during the application process. Interest accrues on the Parent PLUS Loan while the student is in school and during repayment. Eligibility for the loan is not based on financial need. If a PLUS Loan is denied due to credit reasons, the student may be eligible for additional unsubsidized loan money. The online application process will prompt borrowers for this option and UB will be notified. More information on the Federal Direct Parent PLUS Loan can be found at the Federal Student Aid website: http://www.studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp.
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Eligibility
- The parent borrower must be the student's biological or adoptive parent (step parent if listed on the FAFSA).
- The student must be a dependent undergraduate student who is enrolled at least half time in a degree-seeking program.
- The student must have a completed FAFSA on file with UB.
- The student must meet all other Title IV Federal Financial Aid program requirements (i.e., Satisfactory Academic Progress).
- If the parent does not pass the credit check, the parent may still receive a loan if someone agrees to endorse the loan (endorsement process completed at www.studentloans.gov).
- The student and parent must be U.S. citizens or eligible non-citizens and must not be in default on any federal education loans or owe an overpayment on a federal education grant.
- Parent must re-apply for the PLUS loan each academic year.
- A Master Promissory Note (MPN) must be signed online by the parent who applied for the PLUS Loan using the Parent FAFSA PIN.
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Application Process
Note: In order to fill out the online Parent PLUS Loan application and sign the master promissory note, the parent must have a U.S. Department of Education PIN. If the parent does not have a PIN, one can be obtained at www.pin.ed.gov before filling out the online application.
The Department of Education's PLUS Application site combines the Federal Direct Parent PLUS Loan application and Master Promissory Note under one process. Please apply at least 30 days before the bill due date to ensure timely processing of the loan.
Click on the link below to launch the Department of Education's Federal Direct Parent PLUS application. The parent is the borrower and must provide their information during the log in process.
Step 1: Parent Logs in with their Federal PIN
It is very important that the PARENT, not the student, log in using their parent PIN.Click the 'Sign In' button and enter the (parent) PIN and the additional information requested. If the parent does not have a Federal PIN (used to sign the FAFSA) a link is provided to apply for a PIN.
Step 2: Click Start PLUS Application Process
Next click the “Request a PLUS Loan” link and read the information provided. Then click the “Parent PLUS” link to begin the application.Step 3: Enter Parent and Student Information
The first page of the Federal Direct PLUS application requires entry of demographic information for the parent applicant. Page 2 of the Federal Direct PLUS application requires student and school information.Step 4: Review Data Entered
Next verify the information that has been entered. Correct any information that was entered incorrectly.Step 5: Credit Check
Federal Direct PLUS awards are based upon credit. To qualify for the loan, the parent must first pass a credit check. Next the parent borrower must agree to the terms provided and then click submit. The credit check will end in approval or denial.Credit check ends in Denial: If denied, options will be given that include appealing the credit decision, obtaining an endorser, or not pursuing the loan. Select the appropriate answer.
Credit check ends in Approval: If approved, continue with the steps below to complete a Federal Direct PLUS Master Promissory Note (MPN). The MPN must be completed in order for the loan to be processed.
Step 6: Begin the Master Promissory Note process
Read the information provided upon completion of a successful credit check. Click your student's name to begin the promissory note.Step 7: Complete the MPN
The Federal Direct PLUS Master Promissory Note will require the completion of additional parent information and personal references. Enter the required information then read and agree to the terms and conditions of the loan.Step 8: Review and Sign the MPN
Review the information provided, complete the signature boxes and click 'Sign'.Step 9: Print the MPN
Once the loan is approved, the loan will be added to the student's MyUB portal as anticipated financial aid. The loan should disburse on the first day of classes to any outstanding balance due to the university, with excess funds refunded to the student or the parent (as indicated on application). If the refund to parent option is chosen, a check is mailed to the parent borrower's address. If the refund to student option is chosen, a check mailed to the student's local address list on MyUB. Students are responsible for keeping their address(es) up to date in MyUB.
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What to do if the Parent PLUS Loan is denied
If your Parent PLUS Loan is credit denied, there are additional options available to the parent. At the time of denial, the Direct Loan online application process will provide information regarding obtaining an endorser or appealing a credit decision or the parent can contact Applicant Services for PLUS Loan borrowers at 1.800.557.7394.
UB will also be informed of this credit denial within a 3 to 5 day time frame. At that time, UB will offer the student additional unsubsidized loan eligibility that the student can accept on the MyUB student portal.
What happens if the parent endorser or credit appeal is approved?UB will receive notification from Direct Lending and the Parent PLUS Loan will be awarded on the MyUB student portal. If the additional unsubsidized loan has already been awarded to the student at the time the Parent PLUS Loan endorser/credit appeal is received, the additional unsubsidized loan will be cancelled and the Parent PLUS Loan will be awarded in its place.
Any questions regarding the Parent PLUS Loan application and process can be directed to our office at financialaid@ubalt.edu or 410.837.4763.