PLUS Loan
PLUS loans help parents of dependent undergraduate students pay educational expenses. Loan funds come directly from the U.S. government. Parents can borrow up to the difference between Notre Dame's estimated Cost of Attendance and other aid or resources expected to be received. PLUS loans have a fixed interest rate of 7.9 percent.
Eligibility
A parent applying for a Federal PLUS must be the natural, adoptive or step-parent of a dependent undergraduate student. Parents must also have an acceptable credit history, or be able to apply with an eligible co-signer.
Application Process
Parent borrowers who wish to apply for the parent PLUS loan must go to studentloans.gov and log in using the parent's FAFSA pin number, then:
Step 1: Choose option: Request a PLUS Loan (this process will indicate whether you are approved or denied).
Step 2: If approved, you will need to choose option Complete Master Promissory Note (only for first time PLUS borrowers at Notre Dame and borrowers who require a cosigner).
Beginning July 31, 2012, if the steps listed above have not been completed within one month of awarding for 2012-13, we will assume you decline the loan and it will be cancelled.
*Please note: If the Parent PLUS loan is denied, the student will be eligible for an additional unsubsidized Stafford loan. A revision will be made to the student’s financial aid package upon confirmation of the denial
Students must:
- Complete the Free Application for Federal Student Aid (FAFSA)
- Complete the verification review process, if required
- Be enrolled at least half-time in an eligible program of study
- Not be in default on a federal student loan
- Be maintaining Satisfactory Academic Progress for Financial Aid purposes; and,
- Be a US Citizen, or an eligible non-citizen
Disbursement Process
- When the loan is scheduled to disburse, the Department of Education will send the funds to Notre Dame electronically
- The funds will disburse through the student's Notre Dame account
- After tuition and other charges on the account are paid, any remaining balance will be issued to the student or parent via a check (depending upon how the parent completed the application), and will be mailed to the address on record with the University.
PLUS Loan Fees
For 2012-13 all disbursements will occur on or after July 1, 2012. Effective July 1, 2012, a 4% origination fee will be charged by the U.S. Department of Education. There will be no rebate. For example, a $5,000 loan would have a $200 origination fee ($200) that will be deducted from the loan before disbursement. $4,800 would disburse to the school. The parent borrows $5,000 and would need to repay $5,000.
Repayment Terms
Repayment begins within 60 days after the final disbursement of each loan. You may be able to postpone principal payments while your student is in school (up to four years). Contact the Direct Loan Servicer for repayment and forbearance options. The maximum repayment period is 10 years, and the minimum monthly payment is $50.
For more information about PLUS loans, visit the Federal Student Aid website.