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William D. Ford Federal Direct Plus Loan

The Federal Direct PLUS loan is an optional federal loan program for parent(s) who wish to access additional resources beyond what a student is eligible to receive.  This credit-based parent loan option may cover up to the total Cost of Attendance (COA) ,minus student aid.  The interest rate for Direct PLUS is fixed at 7.9%.  Since the Federal Direct PLUS Loan is a federal loan, be aware there are more benefits in a Federal PLUS Loan versus student benefits if they borrow through an alternative (private) loan.

There is a loan fee of 4% of the principal amount charged for each Direct PLUS Loan that you borrow. The total fee is reduced to 2.5% due to an up front interest rebate equal to 1.5% of the loan amount.  To retain this up front rebate, when a parent or graduate student starts to repay their loan, they must make their first 12 consecutive payments on time. The fee and rebate will be applied before you receive any loan money.

The PARENT is responsible for repayment of this loan.

A credit check is required to access this loan program.

An in-school deferment will delay payments on the PLUS loan until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least half-time.  Re payment on the PLUS loan begins 60 days after the loan is fully disbursed for an academic year.  To request an in-school deferment, AFTER the initial PLUS loan disbursement, please contact Direct Loan Borrower Services at 1-800-848-0979. Deferment needs to be requested on an ANNUAL basis, and may be requested 14 days after the loan has been disbursed to the student's account. Interest will continue to accrue on this loan during the deferment period. Therefore, we recommend that you make your interest payments during this deferment period if at all possible.

Parents who had a Federal Direct PLUS loan last year do not need to complete a new MPN unless parents required an endorser on their MPN or were denied a DL PLUS loan last year. VTC will want parents to complete both the MPN and Request form for 2012-2013.

Apply for a Direct PLUS loan in three easy steps:

Step 1: Complete the Free Application for Federal Student Aid (FAFSA), if not already completed.

Step 2: Direct Plus Loan Request Form: Complete and return to the financial  aid office.

Step 3: In addition to this Request form,  a master promissory note https://studentloans.gov/myDirectLoan/index.action must be signed. This can be done online and e-Signed with your federal PIN. The federal PIN is the same you used when you signed your student's online FAFSA. If you do not already have a PIN,  you can go to www.pin.ed.gov. You should receive the requested information within two days via e-mail.

Note: If parents are determined ineligible to borrow through the Federal Direct PLUS program,  VTC will award additional Unsubsidized Federal Direct Loan eligibility upon request. First and second year students are eligible for up to an additional $4,000 per year, while third and fourth year students in a Bachelor's program are eligible for up to an additional $5,000 per year. 

The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solve other  problems with federal student loans.
You may access your prior loan information on the National Student Loan Data System (NSLDS) website at: www.nslds.ed.gov. This site contains all of your federal Title IV aid history.

Not sure how much your monthly payments will be? Use one of our repayment calculators to help you plan - www.finaid.org or www.ed.gov.

Note: The longer your loan is in repayment, the more interest you will pay. Calculations are estimates. Values may not reflect the actual amount computed by the Direct Loan Servicing Center.