Parents - Borrowing a PLUS loan?

• New Parent PLUS loan borrowers:
  1. Have a 2011-12 FAFSA (for your dependent student) on file with KSC (more...), and
  2. Complete a new PLUS loan application/credit authorization and Master Promissory Note (MPN) at StudentLoans.gov.

• For reapplying for the Direct Loan Parent PLUS loan application:
  1. Have a 2011-12 FAFSA (for your dependent student) on file with KSC (more...), and
  2. Complete a new PLUS loan application/credit authorization at StudentLoans.gov.

Please Note:

• Our office will mail an award letter listing the PLUS loan 7-10 business days after we receive the application. The PLUS loan borrower must complete and return the white copy.
• A Master Promissory Note (MPN) must be signed. This can be done online and e-Signed with your federal PIN. The federal PIN is the same one used when you signed your student's online FAFSA. To retrieve or apply for your federal PIN visit the PIN website. You should receive the requested information within two days via e-mail.
• If you are experiencing technical difficulties completing your application, please ensure that you are using a supported browser.

The Federal Direct PLUS loan is an optional federal loan program for parent(s) who wish to access additional resources beyond what a student is eligible to receive. This credit-based parent loan option may cover up to the total Cost of Attendance (COA) as defined by KSC, minus student aid. The interest rate for Direct PLUS is fixed at 7.9%. Since the Federal Direct PLUS Loan is a federal loan, be aware there are more benefits in a Federal PLUS Loan versus student benefits if they borrow through an alternative (private) loan.

2.5% is automatically deducted up-front from your approved PLUS loan total. The 2.5% deduction is the result of a 4% origination fee less a 1.5% interest rebate. To retain this up-front interest rebate, when a parent or graduate student starts to repay their loan, they must make their first 12 consecutive payments on time. You will lose the rebate if you do not make all of your first 12 required monthly payments on time. If you lose the rebate, the rebate amount will be added back to the principal, increasing the loan balance that must be repaid.

The PARENT is responsible for repayment of this loan.

A credit check is required to access this loan program.

A deferment will delay payments on the PLUS loan until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least half-time. Repayment on the PLUS loan begins 60 days after the loan is fully disbursed for an academic year. To request a deferment, AFTER the initial PLUS loan disbursement, you must contact the Direct Loan Servicing Center at 1-800-848-0979. Deferment needs to be requested on an ANNUAL basis, and may be requested 14 days after the loan has been disbursed to the student's account. Interest will continue to accrue on this loan during the deferment period. Therefore, we recommend that you make your interest payments during this deferment period if at all possible.

We will begin processing Direct PLUS loans for the 2011-2012 academic year at the beginning of June.

Note: If parents are determined ineligible to borrow through the Federal Direct PLUS Program, KSC will automatically award additional Unsubsidized Federal Direct Loan eligibility. First and second year students are eligible for up to an additional $4,000 per year, while third through fifth year students are eligible for up to an additional $5,000 per year. The Award Notification must be returned in 10 days for processing to continue.

The Department of Education's Federal Student Aid Ombudsman helps resolve disputes and solve other problems with federal student loans.

You may access your prior loan information on the National Student Loan Data System (NSLDS) website. This site contains all of your federal Title IV aid history.

Not sure how much your monthly payments will be? Use one of these repayment calculators to help you plan:
- FinAid!
- Federal Student Aid

Note: The longer your loan is in repayment, the more interest you will pay. Calculations are estimates. Values may not reflect the actual amount computed by the Direct Loan Servicing Center.

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