Federal Direct PLUS Loan

These federal, educational loans are available to credit-worthy parents of dependent students, regardless of financial need, and are borrowed directly through the University and the U.S. Department of Education (no lender/bank required). Parents can borrow up to the cost of attendance minus other financial aid received. Repayment begins within 60 days of the second disbursement posting to the student's account (2nd disbursement typically disburses in January so repayment begins in March). Deferments are granted upon request, for up to four years provided the student remains enrolled as an undergraduate student. Standard repayment period is ten years.  Effective July 1, 2013, the Federal Direct PLUS Loan interest rate will be "variable-fixed," meaning parents/graduate students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan.  The PLUS interest rate is set at 6.41% for loans with first disbursements between July 1, 2013 through June 30, 2014.  Effective for PLUS loans disbursed July 1, 2013 and after, the origination fee deducted by the federal government will be 4.288%.  Calculate your monthly PLUS Loan payments using the government's online loan calculator.

To apply for a Federal Direct PLUS Loan:

1. Complete a Federal Direct Parent PLUS Pre-Approval Form at www.arcadia.edu/finaidforms. (This enables the University to perform a credit-check on borrower's behalf.)

2. Complete a Federal Direct PLUS MPN* (Master Promissory Note) online at www.StudentLoans.gov. Federal PINquired. 

Those approved on a Direct PLUS Loan will receive a revised award letter reflecting the PLUS Loan. Those denied on the basis of credit will receive a notification directly from the U.S. Department of Education. In the event that a parent of a dependent undergraduate student is denied for the PLUS Loan on the basis of his/her credit, the federal government automatically allows the student to apply for an additional Unsubsidized Federal Stafford Loan that would be in his/her name, of $4,000/year as a freshman or sophomore; $5,000/year as a junior or senior. A parent must apply for the PLUS Loan and be denied annually for student to qualify.

*Only required for first-time Federal Direct PLUS borrowers. MPN is good for up to ten years.

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