The Federal Parent PLUS Loan is a low interest loan available to assist dependent students admitted and enrolled in an undergraduate degree program. The borrower of this loan is the parent of the dependent undergraduate student. To be eligible for the Parent PLUS Loan, the parent borrower should have no adverse credit history.
The Parent PLUS Loan is an unsubsidized loan, meaning interest begins to accumulate on the loan from the time it is disbursed. The first payment is due within 60 days after the loan is fully disbursed (however, many lenders offer reduced or deferred payment options). For more information please refer to the Guide to Federal Student Aid. Interest rates on Federal PLUS Loans can be found here.
Parent PLUS Loan Processing Requirements
FAU requires the student on whose behalf the PLUS Loan is borrowed meet ALL of the following 5 conditions:
1.
The dependent student is admitted to FAU as an under-
graduate degree seeking student.
2.
The dependent student is enrolled half time and meeting all
general aid eligibility criteria (including the Satisfactory Academic Progress Policy) for the period of enrollment for which the Parent PLUS Loan is intended. See the Policies/Rules and Regulations section of the FAU Office of Student Financial Aid web site for detail of this criteria.
3.
The Florida Atlantic University Office of Student Financial Aid
has electronically received a transmission of the Student Aid Report from the U.S. Department of Education for the student. This report is generated after the student has filed a Free Application for Federal Student Aid (FAFSA). If the student has not already filed, they may file this application online at http://www.fafsa.ed.gov. For dependent undergraduate students. parental information and signature are also required on this application. FAU requires a valid FAFSA be filed for all students who are requesting to be processed for PLUS Loans.
4.
The Florida Atlantic University Office of Student Financial Aid
has received all required documentation needed to process the student’s file. Instructions on how to review the status of all required documents can be obtained from the Application Status link on the Office of Student Financial Aid home page.
5.
The parent borrower has obtained an approved PLUS pre-
screen decision from their selected lender (see below) prior to the last two weeks of the semester for which the Parent PLUS Loan is intended.
Parent PLUS Loan Pre-Screen Requirements
Prior to certifying a Parent PLUS Loan, FAU requires the parent borrower obtain pre-approval for the Parent PLUS Loan via a PLUS pre-screen. PLUS pre-screens can be performed either by telephone or over the internet at one of the websites below. For each Parent PLUS Loan requested by the parent borrower, the parent borrower must first have the loan request pre-approved by the lender. If the parent borrower is approved, FAU will process a Parent PLUS Loan in the amount requested by the borrower or the maximum the student is eligible to receive (calculated as the student's Cost of Attendance Estimate less any other aid or assistance awarded), whichever is lower.
Important Note On Plus Loan Disbursements:
Parent PLUS Loans are disbursed to FAU as paper checks made CO-PAYABLE to FAU and the parent borrower. Once FAU receives a Parent PLUS Loan check, it takes approximately 3-4 business days for FAU to process and mail the check to the borrower. If the dependent student has no outstanding financial balance due to FAU at the time of processing, FAU will endorse the check and mail it to the parent borrower to be cashed/deposited. If the dependent student shows an outstanding financial balance due to FAU at the time of processing, the check will be sent to the borrower without FAU's endorsement. In this latter case, it will be requested that the parent borrower endorse the check and return it to FAU. After the check is received with parent borrower endorsement, FAU will apply the check to the student's outstanding balance due. If the amount of the check exceeds the student's balance due, a check for the overage will be mailed to the parent borrower in approximately 7 business days.
PARENT PLUS LOAN LENDER LIST
The FAU Office of Student Financial Aid can process a Parent PLUS Loan with any lender which participates in the Federal Family Education Loan Program. When selecting a lender, FAU advises parent borrowers to compare lenders based on the total cost of the loan, incentives for on-time repayment, and efficiency/quality of service. The lenders listed below have an established track record of efficient loan processing and timely delivery of funds as well as competitive incentives for on-time repayment.
Parent PLUS borrowers may research (and apply for) Parent PLUS Loans through FAU’s established lenders on-line by double clicking on the lender’s corresponding link below.
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