Parent Loan Options
Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan Program is available to parents of undergraduate students, who are approved via a credit check. A parent of an undergraduate student may borrow up to the total Estimated Cost of Attendance less financial aid resources received by the student. The U.S. Department of Education is the lender for the Direct PLUS Loan Program.
The Federal Direct Parent PLUS Loan Program charges a 4.264% origination fee, charged by the federal government, which means that the actual amount credited to the student account from the loan will be 4.264% less than what the loan was originated for. The maximum Parent PLUS Loan a parent may borrow per academic year is equal to your cost of attendance minus other financial aid (including Federal Direct Subsidized and/or Unsubsidized Loans for which you are eligible). There is no aggregate maximum loan limit for the Parent PLUS Loan.
Parent PLUS Loans are only available to parents of dependent students, and begin accruing interest once disbursed to the school. The current interest rate is 7.00% (fixed rate for loans first disbursed July 1, 2017 - June 30, 2018).* On July 1, 2018, the interest rate will change to 7.595%.
The first payment is due within 60 days after each loan is fully disbursed.
Parents have the option of deferring repayment based on your enrollment status. Specifically, parent PLUS borrowers may defer repayment:
- While the student is enrolled on at least a half-time basis, and
- During the 6-month period after the student cease to be enrolled on at least a half-time basis
- Interest will be capitalized until repayment begins. If a deferment is chosen, the parent borrower will be sent a quarterly interest statement and will have the option of paying the interest as it accrues during the deferment period. The parent borrower may be allowed up to 30 years for repayment.
Parent borrowers must call the Direct Loan Servicing Center (DLSC) at (800) 848-0979 to request a deferment. Please note that if the parent borrower does not choose to defer payment, repayment begins 60 days after full disbursement of the loan. Therefore, the first payment of a fall/winter loan will usually be due in February. Interest begins to accumulate when the first disbursement is made.
How and When to Apply
You should begin the application process prior to the beginning of the academic year, however applications for upcoming academic years are not generally available until after July 1st.
To Apply, follow these steps:
- Complete the PLUS Request Process at studentloans.gov.
- If approved, complete PLUS Loan Credit Counseling.
- If denied and seeking an endorser or reconsideration through the Department's extenuating circumstances process, PLUS Loan Credit Counseling will need to be completed.
- Complete a PLUS Master Promissory Note to accept the terms of your loan and allow Siena to process and request your loan funds.
After receipt of your application, Siena Heights University confirms the information on the application, and will contact you if additional information is needed.
Options if PLUS Loan is Not Approved
There are some options available if a parent is not approved for a PLUS loan. Parents can be reconsidered and approved with a qualified endorser (co-signer), who promises to repay the loan of the parent borrower does not. Parents can also seek reconsideration by the Department of Education due to extenuating circumstances. NOTE: Parent PLUS Loan Credit Counseling is required for all approved loans.
The student has the option of taking out an additional Unsubsidized Stafford Loan. The amount of the loan will vary based on grade level and financial aid that the student has already received. For freshmen and sophomores the amount is up to $4,000 and for juniors and seniors the amount is up to $5,000 for the year.
Once Siena Heights University receives notification that the PLUS application has been denied, we will revise the student's aid package to reflect the additional loan amounts. The student will be notified and given the option accept all, a portion, or to decline the additional amount. Additional loan eligibility cannot be awarded without a Parent PLUS Denial.
*Loan origination fees and interest rates are set and collected by the Department of Education, and are subject to change.