| PLUSLoans
for Parents & Graduate Students
What is a Federal PLUS Loan for Parents? The Parent Loan for Undergraduate Students (PLUS) is a low-interest federally insured loan for parents of dependent students to help pay college costs. The loan can be used to cover any educational expenses not covered by other forms of financial aid. Approval for the loan is based on the borrower's credit, not assets. This fact makes PLUS Loans unique. What is a Federal PLUS Loan for Graduate Students? The PLUS Loan is a low-interest federally insured loan specifically for graduate students to pay college costs after you have maximum your Stafford Loan eligibility. Approval for the loan is based on the borrower's credit, not assets. This fact makes PLUS Loans unique. What is the Federal PLUS Loan Master Promissory Note (MPN)? The MPN is a legal document you sign to show you are responsible for repaying the loan. The MPN can be used for a single loan or multiple loans covering one or more loan periods. Eligibility for PLUS Loan: Parent/Graduate Student Parent may apply for a Parent PLUS Loan if the student is:
In addition, the parent must be a U.S. citizen or permanent resident alien. When parents do not qualify for a Parent PLUS Loan, the student may be able to obtain an Unsubsidized Stafford Loan or an alternative loan. Should parents still wish to assist, they can pursue consumer lending options. A graduate student may apply for a Grad PLUS Loan if he/she is:
Credit Information to consider... All PLUS Loan applicants must pass a credit check to be eligible. Applicants who are unsure of their credit profile may choose to use a credit pre-screening before submitting the PLUS Loan Master Promissory Note. Some lenders may allow a cosigner, or endorser, who will be jointly liable for the loan, if the borrower's credit is a problem. Credit Pre-Screening Option If you have doubts about your credit profile, most lenders offer a credit screening. A pre-screening does not replace the PLUS Loan application and does not guarantee eligibility for a PLUS Loan; it simply notifies you whether your credit is satisfactory. A satisfactory credit report may be used as the basis to apply for a Federal PLUS Loan within 60 days of notification; after 60 days, a new, up-to-date credit check will be required. Maximum Amount for PLUS Loans The maximum loan amount per academic year is the school's estimated cost of attendance less other student financial aid. For the graduate or professional student, Stafford and PLUS Loans are all that are needed; an alternative loan should not be necessary. Applying for a Federal PLUS/Graduate PLUS Loan Step 1: Parent/Graduate Students may access Methodist University's preferred lender list* Step 2: Once the Parent/Graduate Students has selected a lender, simply click on the "Apply Now" option located to the right side of the lender's detailed description to begin the loan application. Step 3: The Lender will notify the Parent/Graduate Students of additional documentation needed or approval of the Plus/GRADPlus loan. The lender will then send a certification request to the Office of Financial Aid for authorization of Plus/GRADPlus loan. Step 4: Parent/Gradute Students may check the status of the loan by contacting the lender or by accessing www.elmresources.com. |
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The Office of Financial Aid
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