Federal Parent Loan (“PLUS”)
The PLUS Loan is designed with the parent in mind. From this loan program, the parent may borrow the difference between the “cost of attendance” and all financial aid the student has received.
The Free Application for Federal Student Aid (FAFSA) must be completed before you can apply for this loan.
Parents who wish to borrow the Parent PLUS Loan can do so one of two ways: 1) Online or 2) LFC PLUS Loan request form.
First time borrowers must complete a PLUS Loan Master Promissory Note (MPN). Repeat borrowers will be contacted via email if a new MPN is needed.
Determine the amount you need to borrow, by using the Monthly Budget Calculator. Note that the “end value” is the NET amount needed from the loan to cover the costs listed in the first two sections of the Calculator (not books, travel, personal expenses, etc.). Once you have determined the NET amount, divide that value by 0.957 to arrive at the GROSS amount you need to request to end up with the NET amount
You (the parent) should “sign in” at www.studentloans.gov and select “Request a Direct PLUS Loan then select “Parent PLUS.” Please use your own Federal Student Aid ID and not the student’s FSA ID. To create an FSA ID or if you forgot yours, go to www.fsaid.ed.gov.
When completing the Federal Direct Parent PLUS Loan application, you will be required to select the loan period start dates. You can select August 2015 to May 2016 if you want this loan for fall and spring semesters. Or if you wish to apply for one semester only you can do August - December 2015 for fall term only, or January - May 2016 for spring term only.
You will be required to select the loan amount you wish to borrow (remember to include the 4.292% origination fee), or you can request the maximum amount and we will determine what amount that is based on the cost of attendance and financial aid received.
If you receive a negative credit decision, you will be presented with the following options:
- Appeal the decision – You should consider this option if you think there is an error on your credit report.
- Apply with an endorser – Additional information will be presented to you by the Application Services Department, but make a note of the loan ID number.
- Additional Unsubsidized loan for the student - Additional loan limits are- first-year and sophomore students: up to $4,000 per year, and junior and senior students: up to $5,000 per year.
- Undecided – No additional loans will be awarded to the student. Please contact our office to discuss the options.
If you were approved, complete an MPN: You (the parent) must complete the Parent PLUS Loan Master Promissory Note (MPN):
- Go to www.studentloans.gov and sign in using your FSA ID. On the left hand side menu select “complete MPN” then select “Parent PLUS”, and then complete all four steps.
2) LFC Parent PLUS Loan Request Form
Download and complete the PLUS Loan request form, and
Compete the Parent PLUS Loan Master Promissory Note (MPN):
- Go to www.studentloans.gov, and sign in using your FSA ID. On the left hand side menu select “complete MPN” then select “Parent PLUS”, and then complete all four steps.
What happens next
If you are eligible for a PLUS Loan:
Approximately 10 days after you submit the PLUS Loan Request Form to us, we receive word of the credit decision. If the PLUS Loan is approved, it will appear on your tuition account as an anticipated credit. After we certify the loan (confirm your eligibility) the loan funds will be sent to the College and applied to the student’s tuition account. You will receive a notice from the College’s Business Office when the funds have been applied to your student’s account.
If you are not eligible for a PLUS Loan (“adverse credit”):
If you are denied the PLUS Loan your son/daughter will be able to receive some additional funds, up to $5,000, from the Unsubsidized Federal Stafford Loan.
A PLUS Loan can be denied if you have adverse credit, currently defined as being 90 or more days delinquent on any debt, or any of the following in the last five years: loan default, bankruptcy, foreclosure, repossession, tax lien, wage garnishment, etc…