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Financial Aid > PLUS Loan Application Process

 

A Federal PLUS Loan is an effective means by which parents can finance their child’s undergraduate educational costs.  Parents may borrow up to the cost of education minus any financial aid their child is receiving.  (See "How Much to Borrow?")  There is no annual or aggregate loan limit.  The main eligibility requirement is that the parent be pre-approved by submitting to a credit review and deemed creditworthy. Parents have the option to begin repayment after the PLUS Loan is fully disbursed or they may defer making payments until six months after their child graduates from college.  Learn more about the Federal PLUS Loan.

 

How to Apply for a Federal PLUS Loan

 

You may either select one of the lenders given on our Lender List below, or you may choose any other lender who makes Federal PLUS Loans.  All of the lenders on our list must follow the same federal guidelines and all of them offer their borrowers similar products and services.  These are the features all of them offer:

  • Origination Fee of 3%
  • Default Fee ranging from 0% to 1%
  • Interest Rate of 8.5% (fixed) 
  • Borrower Incentive of 0.25% interest rate reduction if payments are made via automatic debit
  • Electronic Master Promissory Note completion online and with electronic signature; online endorser process, quick credit response
  • Account information available online 24 hours a day, seven days a week
  • Toll-free Customer Service Hotline with hours ranging from 8:00 a.m. to 11:00 p.m. ET.
  • Financial Literacy and Financial Planning Resources 

Our often-used PLUS Loan Lenders * are (in alphabetical order): 

 

Complete a Federal PLUS Loan Application/Master Promissory Note (MPN).

  • Select one of the lenders from our Lender List or any other PLUS Loan Lender.
  • Click on the lender’s name to access their Application/Master Promissory Note;

 

What Happens Next:

  • Your lender will notify the Office of Financial Aid after you have been preapproved for the PLUS Loan and completed the PLUS Loan Master Promissory Note;
  • The Office of Financial Aid will contact you if additional information is required.  Your PLUS Loan will be certified and transmitted for processing.
  • Federal PLUS Loan funds will be electronically disbursed to the College.

 

Although we consider these lenders will best serve your needs, you are free to select any other lender who makes Federal PLUS Loans.

 

* The lenders on our Lender List were evaluated based on their financial stability, their customer service and hours of availability, their value-added products such as financial literacy and debt management, their default prevention programs and materials, and their loan servicing capability.

 

 

 

Borrow Wisely

  • Consider the Federal PLUS Loan after your student has used all possible Stafford Loan funds, which carry lower interest rates.  Stafford Loan maximums are $5500 for freshmen, $6500 for sophomores, and $7500 for both juniors and seniors.
  • Borrow only the funds you need. 
  • Review our page "How Much to Borrow?" 
  • Try to make at least some interest payments on any Federal PLUS Loan while your student is enrolled, in order to reduce your total debt.
  • Tell your lender/servicer about changes that need to be made to your name, address, or telephone number and also about your withdrawal or your student’s graduation.  
  • Wise management of your loan will establish an excellent credit history.  To help insure that all payments are made on time, consider setting up an automatic debit from your checking or savings account.
  • Keep copies of all documents and correspondence related to your loans in one place.  


For More Information...

 

...about the loan process or other financial aid matters, please feel free to contact our office and speak with:

 

Margaret Alsaraf
Assistant Director of Financial Aid
alsaraf@lakeforest.edu
847-735-5015 (phone)
847-735-6271 (fax)
 


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