There are two types of PLUS Loans available: a Parent PLUS, for parents of undergraduate students, and a Graduate PLUS, for Graduate Students.
All Stafford Loan funding should be exhausted prior to a Parent of Graduate PLUS being borrowed. Graduate students must apply for the maximum Stafford Loan eligibility prior to borrowing a Grad PLUS.
A Federal Parent PLUS is available to an eligible parent or legal guardian of a dependent undergraduate student. The US Department of Education lends PLUS Loans. A PLUS borrower must be credit-worthy as determined by the Department of Education. Your parent(s) must submit a completed PLUS Master Promissory Note (MPN) and credit-check to the Department at www.studentloans.gov.
After reviewing credit, ED will notify the borrower and Wagner of the credit decision. Once the MPN is completed by the borrower, the college certifies the loan in accordance with the amount requested and the student’s financial aid package.
Note: A FAFSA must be on file for the student in order for a parent PLUS to be processed.
A PLUS borrower is responsible for paying the interest that accrues on the loan (which begins when the first disbursement is made) until the loan is paid in full. Normally, once the loan is fully disbursed, repayment begins within 60-90 days. A borrower may be able to defer payments while the student is in school.
In most cases, the loan funds will be disbursed in at least two installments (no installment can be greater than half the loan amount). Origination/ default fees may be deducted from the gross amount of the loan prior to disbursement. The funds will first be used to pay for your tuition and fees, room and board, and other school charges. Any remaining loan money must be used for your educational expenses.
In the event that a parent PLUS is denied by a lender, the student may be eligible to borrow additional resources under the Unsubsidized Stafford Loan Program. Another option would be for the parent to obtain a credit-worthy endorser for the PLUS and to reapply to the lender.
Wagner will typically certify a PLUS within 2-4 weeks of receiving the credit check and MPNt. Upon certifying the loan, a temporary credit will be placed on the student’s account until such time as the funds are disbursed by the lender.
NOTE: Your school can refuse to certify your parents’ loan application, or can certify a loan for an amount less than they would otherwise be eligible for, if the school documents the reason for its action and explains the reason to your parents in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education.
*Effective July, 1, 2010, the PLUS interest rate will be fixed at 7.9%.
PLUS for Graduate Students
The graduate PLUS is similar to the parent PLUS except that the loan will be borrowed in the graduate student’s name and based upon the student’s credit-rating. In order to borrow a graduate PLUS, a student apply for the maximum subsidized and unsubsidized Stafford Loan eligibilty prior to borrowing a PLUS.
If a graduate student is denied a PLUS, additional unsubsidized Stafford Loan eligibility does not apply.