PLUS Loan Application Process

The PLUS loan application process is undertaken by parents who wish to pay for the education of their children by taking advantage of federal educational lending programs. PLUS loans are offered to parents that meet certain eligibility requirements and have a child who is enrolled in college at least half-time. There are many types of federal student aid programs available, such as the Stafford or Perkins loan, the ACG and Smart grants, and federal scholarship and work study programs.
But the PLUS loan application process is just for parents, and is completely different from the process that students use to apply for federal aid via the FAFSA.

A PLUS loan application can be obtained from financial aid representatives where a student is enrolled. The application must be filled out by the parent and may require certain documentation in order to approve an application. For this reason, parents should be prepared with income and asset information, current debt information, and tax or employment records. Completing the application can take several hours if unprepared.

PLUS Loan Application: What Happens Once I Submit?

Once the application and all documentation is submitted through the school’s financial aid office, the United States Department of Education will make a determination based upon the information that you provide and information available through other resources. Most parents are approved as long as they do not have an adverse credit history. If the parent is approved, they can borrow enough funds to pay for all costs related to their child’s education, provided the student remains enrolled at least half time and the parent repays the account as agreed.

With a fixed interest rate of just 7.9% and the ability to defer payments until after the student has graduated, a federal PLUS loan could be exactly what is needed to fund your child’s education. In order to find out, simply sill out a PLUS loan application.