Federal Parent PLUS Loan Program
Overview
Parents of dependent undergraduate students have access to a very good, but often overlooked, federal loan, the PLUS loan. Emerson participates in Federal Family Education Loan Program (FFELP) PLUS Loans.
PLUS is guaranteed by the federal government and can be used to borrow the cost of attendance less other financial aid received. As with any type of loan, we suggest only borrowing what is needed.
Eligibility
When applying for a Federal Parent PLUS Loan you must be the biological or adoptive parent of the dependent undergraduate student who submitted the Free Application for Federal Student Aid (FAFSA). In addition, you must pass a credit check and be a US citizen or permanent resident.
| Undergraduate and Graduate Students | |
|---|---|
| Fees | Interest Rate |
| up to 4.0% of the Loan |
8.5% |
Fees
Parents pay a fee of up to 4% of the loan, deducted proportionately each time a loan disbursement is made. A portion of this fee goes to the federal government, and a portion goes to the guaranty agency. You can contact your own lender for fee information.
Interest Rate
The Federal PLUS loan has a fixed interest rate of 8.5% for all loans first disbursed on or after July 1, 2006. Many lenders give interest rate reductions based on timely payments and utilization of ACH payments. You can contact your own lender for interest rate information.
Process
Once you're approved for your PLUS Loan and submit your completed promissory note, the lender sends a certification request to Emerson College. The College certifies the student’s dates of enrollment, anticipated graduation date, enrollment status, and loan amount eligibility. Once certified, the net loan proceeds are sent to Emerson College and applied directly to the student’s account.
Disbursement
Loans certified for the full academic year are disbursed in 2 parts, half for Fall and half for Spring.
Lenders
Emerson does not recommend PLUS Loan lenders to parents. While we understand that you may have questions, we believe you have the right and ability to seek the education loan provider of your choice. If you would like a starting reference of where to research lenders that are participating in the educational lending market, we suggest:
- Look at your current banking relationships and ask them if they offer educational loan programs. Current banking relationships may include your personal accounts, mortgage company or credit card company.
- Contact your home state educational loan agencies. In New England these agencies are: Connecticut Student Loan Foundation, Massachusetts Educational Finance Authority, Maine Educational Loan Authority, NHHEAF (NH) , Rhode Island Student Loan Authority and Vermont Student Assistance Corporation . If you live outside of New England, your state most likely has their own agency. Ask your local high school for information or do a web search.
- For a broader range of information you could visit www.finaid.org a free, non-Emerson affiliated website that give tips and information on many financial aid topics including loans.
Disclaimer
Information on financing programs is subject to change without notice. Emerson College is not responsible for any changes.
Revised 4/8/09
