As a result of the strain on the U.S. financial market with banks and lenders leaving the FFEL Program or charging loan fees, Messiah College has decided to return to 100% participation in the Direct Loan program for the 2009-2010 academic year and beyond. This means that instead of going to a financial institution (bank/lender) to apply for a Federal PLUS loan, parents will apply directly through Messiah College.
Who is Eligible for a Parent PLUS Loan?
The parent must be the student's biological or adoptive mother or father. Both parents may get a PLUS loan as long as the total aid package does not exceed the student's cost of attendance. A stepparent is also eligible to borrow a PLUS loan if their income and assets would be taken into account when calculating the dependent student's EFC. A legal guardian is not considered a parent for FSA purposes. (FSA Handbook)
How Do I Apply for a Parent PLUS Loan?
- To obtain a Federal Direct PLUS loan please complete the application.
- You must sign a Master Promissory Note (MPN) for Parent PLUS loans online at www.dlenote.ed.gov. You will need your FAFSA PIN number to use as your electronic signature.
What are the Terms and Conditions of a Federal PLUS Loan?
- 7.9% fixed interest rate
- 4% fee with an upfront 1.5% rebate, which means a net fee of 2.5% that is deducted from the disbursed amount.
- Repayment:
- Will begin 60 days after final disbursement is made, or
- Payments can be deferred while student is enrolled at least half-time.
- Call Direct Loan Servicing to have the loan deferred (deferral needs to be renewed each year) at 1.800.848.0979.
- You can make interest only payments during deferment, if you choose.
- Standard Repayment term is 10 years.
- After the Federal PLUS loan has been approved by Direct Loans, a Disclosure Statement from the William D. Ford Federal Direct Loan Program will be mailed to the borrower at the address on the PLUS loan application. This Statement details all the terms and conditions of the Federal PLUS loan.
If you have any other questions in regards to the PLUS loan, please feel free to contact the Financial Aid Office at 1.717.691.6007 or email finaid@messiah.edu.
