#parent plus loan
Federal Direct Parent PLUS Loan
Dependent students may have a Federal Direct Parent PLUS Loan included in their Hamline University Financial Aid Award Letter. Depending on need, a parent may borrow up to Hamline’s cost of attendance minus any other financial aid that is awarded to the student. The Hamline University Student Financial Aid Award Letter indicates the amount a parent may consider borrowing for a student’s education during the coming school year.
Parent Eligibility Requirements for The Parent PLUS loan
How to Apply
- Request Loan Amount: To apply for a PLUS Loan, complete the Federal Direct Parent PLUS Loan Request and Credit Authorization below. (Hamline University does not participate in the PLUS Application found at StudentLoans.gov .) Your Direct PLUS Loan will not be processed until we receive the completed Federal Direct Parent PLUS Loan Request and Credit Authorization. The amount requested will be split evenly between the terms for which the student is awarded.
Effective October 1, 2014 to September 30, 2015, the loan fee for the Federal Direct Parent PLUS Loan is 4.292% which is taken off the amount request at each disbursement. Loans received on or after October 1, 2015 have a loan fee of 4.272%.
The Federal Direct Parent PLUS loans for the 2014-2015 academic year have a 7.21% fixed interest rate. The interest rate for the 2015-2016 academic year have a 6.84% fixed.
The Federal Direct Parent PLUS Loan is flexible and allows a parent to decide how much to borrow. Repayment begins within 60 days after the full amount borrowed for a school year has been disbursed (around April 1 for a full-year loan). However, parents may request that repayment be delayed until 6 months after the student graduates or is no longer enrolled at least half-time. To request this deferment, parents must contact their loan servicer. A letter identifying the loan servicer is mailed from Direct Loans upon the first disbursement. Loan servicer information is also available within 7-10 days from the first disbursement on www.nslds.ed.gov using the parent borrower’s information and FAFSA PIN. The minimum monthly payment on a Federal Direct Parent PLUS Loan on a standard repayment plan is $50 per month.
If You Are Denied
If your credit is denied, you will receive notification from the direct loan servicer. You can:
- Seek a credit status override. Contact the Direct Loan Origination Center at 1-800-557-7394 and Equifax (their credit bureau) at 1-800-685-5000.
- Request a review. If you have extenuating circumstances, provide documentation to Direct the Direct Loan Origination Center.
- Have a third-party endorser co-sign the Federal Direct Parent PLUS loan application. Contact Direct the Direct Loan Origination Center at 1-800-557-7394.
- Choose not to pursue the denied Federal Direct Parent PLUS loan. Contact the Office of Financial Aid at 651-523-3000 to discuss alternative options
Please note: Some borrowers may need to complete online PLUS counseling. This is different than Entrance Counseling and, if required, must be completed in order for the loan to disburse. Direct Loans will notify you if you are required to complete the counseling.