Learn About Your Lender Parent PLUS Loans Federal Stafford Loans

Student Financial Services

Parent PLUS Loans

(All links to sources off this website open in a new browser window.)

Parent PLUS Loans

General Information
Parent loans are designed to assist parents who need additional educational financing. Loan approval is based on credit worthiness and ability to repay. Parent loans are available to a parent whose student is pursuing a degree program, enrolled at least half time, and are maintaining Satisfactory Academic Progress. In addition, students must have completed the Free Application for Federal Student Aid (FAFSA). As with any loan, careful consideration should be made in determining amounts to be borrowed, as the loan must be repaid. To borrow a PLUS loan for a student, the parent must be the student's biological or adoptive mother or father.  The spouse of a parent who has remarried (i.e., the student's stepparent) is also eligible to borrow a PLUS on the student's behalf, if his/her income and assets would be taken into account when calculating the dependent student's expected family contribution on the FAFSA.  A legal guardian is not considered a parent for FSA purposes.

 
Interest on the PLUS Loan for the 2007-2008 Academic Year
On February 8, 2006 President Bush signed the Deficit Reduction Act which set the interest rates for the Federal Stafford and Federal PLUS loan programs. Interest rates for Parent Plus loans disbursed on or after July 1, 2006 will be at a fixed interest rate of 8.50 percent.
For Parent PLUS loans disbursed July 1, 1998 through June 30, 2006 the interest rate is variable.  This rate is based on the final auction of 90-day Treasury Bills held prior to June 1.  Parents will be notified of interest rate changes throughout the life of the loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

Applying for a PLUS Loan
Warner participates in the FFEL PLUS Loan program. To apply, parents must complete and submit a PLUS Loan application to a participating lender. Most lenders offer a “pre-approval” process to parents. Parents can complete a form online or provide their information over the phone. Parents must provide the lender with the LOAN AMOUNT REQUESTED and the LOAN PERIOD when completing a loan application.
The yearly limit on a PLUS loan is equal to a student's cost of attendance (including tuition and fees, and an allowance for room, board, books, travel and miscellaneous) minus any financial aid the student is receiving.
Apply and esign your Parent Plus loan application

“Learn about your Plus loan lender”
Picking the right lender for your parent loan is an important decision. The streamlined lenders below have worked with parents to help their students achieve their educational goals. So when you choose a streamlined lender, you're working with experts who understand your needs.


Q: Can choosing the right lender save you money?

A: Absolutely. You can save hundreds of dollars by choosing a lender with the best repayment benefits. However, their special benefits do differ! Please review each lender benefits before making a decision.

Q: Do all lenders charge the same interest rate?

A: Yes. All lenders are required by federal law to charge the same interest rate. Loans made on or after July 1, 2006 will have a fixed rate of 8.50%

Q: How much can I borrow?

A: Never borrow more than is absolutely necessary. Remember: The more money you borrow now, the more you'll spend paying it back. Only borrow what you need, try to limit your level of borrowing. Some lenders have a minimum amount they will lend. The maximum Warner can certify is cost of education less other financial aid.

Q: What is the typical repayment term?

A: Most lenders offer up to 10 years to repay a parent loan. Parents should check directly with their lender to view the terms of their loan.

Q: What are the eligibility requirements?

A: Lenders require that the parent is a U.S.Citizen or permanent resident and are credit-worthy. Approval decisions come directly from the lender.

Q: What if I am denied a Parent Plus loan?

A: The Parent Plus loan is based on creditworthiness and a credit report will be pulled and reviewed by the lender. If you denied a parent plus loan only the lender can discuss the reasons for a denial. You should contact the lender directly. On occasion they find discrepancies on your credit report that can be resolved. The lender will indicate to Warner that a parent has been denied. Warner will notify the student that he/she may have an option to borrow additional funds through the Unsubsidized Stafford Loan program.

Q: Are some lenders faster?

A: Yes. The “turnaround time” required by different lenders varies. However, by choosing one of our streamlined lenders, the lender is committed to delivering fast, accurate loan disbursements as a top priority.

Q: What is a servicer and how does it affect me?

A: Servicers are companies that manage payments, address updates, deferments, and forbearance for borrowers.

Q: Does customer service matter?

A: Yes. When you call a servicer or lender, you can speak to a real person, not just a voice system. The customer service staff can answer all your questions about education financing.

Choosing one of our streamlined lenders will allow us to process the PLUS loan electronically and receive the funds via electronic funds transfer (EFT). Parents, however, may select another lender. Note: For parents who wish to choose their lender please apply below and select your lender from the dropdown selection. Parents may also contact their lender directly or contact the Financial Aid Office.

Click here to view our streamlined lender list and their available benefits.

Click here to apply for a plus loan. You may select the lender of your choice.

Receiving the PLUS Loan
Federal PLUS loans are disbursed in two installments. When the specified loan period is the entire academic year, the PLUS funds are disbursed in August and in January. When the specified loan period is one semester out of the academic year, the PLUS funds are also disbursed in one disbursement.
Repayment of the PLUS Loan: Please contact your lender for repayment options.
There are tax incentives for certain higher education expenses, including a deduction for student loan interest for certain borrowers. To learn more about the 2006 tax tips, please click here. This brochure is for informational purposes only. Students and parents should refer to Publication 970 at www.irs.gov or a qualified tax advisor for help.

Loan Tracking Information
Parents interested in verifying their loan account balances can use one of the following online resources:

• The National Student Loan Data System – NSLDS is the Department of Education's central database for student aid. It provides a centralized, integrated view of federal student loans and Pell Grants that are tracked through their entire cycle, from aid approval through closure.

• The National Student Loan Clearinghouse Loan Locator – The Loan Locator allows students to track their student loans and obtain lender contact information.

* Available using: Adobe Acrobat Reader

Click on the logo below to apply for the Free Application for Federal Student Aid (FAFSA).

(All links to sources off this website open in a new browser window.)