Eligibility

PLUS loans are funds provided to the parents of dependent undergraduate students by the U.S. Department of Education, through Miami. This federal loan program allows parents with no adverse credit history to apply for a loan amount up to the cost of attendance each year, less any financial aid received by the dependent student. Parents are responsible for loan repayment of principal and interest which begins once the loan is fully disbursed with some options to delay payment available. Parents of dependent students may apply for this loan at StudentAid.gov.

The borrower must be a natural parent, adoptive parent, or stepparent (if his/her income and assets are included on the FAFSA) of the dependent student. The Free Application for Federal Student Aid (FAFSA) must be submitted before a PLUS Loan Application can be processed. If a parent has an adverse credit history, they may still receive a PLUS Loan through one of these two options:

1. Obtaining an endorser who does not have an adverse credit history.
2. Documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to the adverse credit history.

If a parent is unable to secure a PLUS Loan, the student may be eligible for additional unsubsidized loans. In the event a parent is ineligible to apply for a PLUS Loan due to being in default on a federal loan, the parent must notify us in writing.

PLUS Master Promissory Note (MPN) for Parents

The PLUS Master Promissory Note (MPN) is a legal document in which the parent promises to repay their loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan(s). In most cases, the parent may receive more than one loan under an MPN over a period of up to 10 years to pay for their child’s educational costs. After completing the PLUS application, parents can complete the MPN at StudentAid.Gov.

A parent who wants to borrow a PLUS Loan for more than one dependent student must complete a separate MPN for each student. In addition, if each parent wants to borrow a PLUS Loan for the same student, they must individually complete a separate application and MPN.

If the parent has an adverse credit history and has obtained an endorser for a PLUS Loan, the MPN that the parent completes becomes a "single-loan" promissory note. No further PLUS Loans may be made under that MPN. The endorser is liable only for the specific loan that he or she has agreed to endorse.

Disbursements

The interest rate is fixed and is adjusted each year on July 1. There is a loan fee deducted from each disbursement of the PLUS loan. Visit StudentAid.gov to view information about interest rates and fees.

The loan will be applied to the student’s account. The loan must be disbursed in two equal amounts at the beginning of each term. If the disbursement is in excess of the amount owed on the bill,  a refund check will be made payable to the parent and mailed to the home of the parent borrower (unless the parent requests on the PLUS Loan application that the refund be issued to the student).

Changing Loan Amounts

Parents may cancel all or portions of their loan(s) after the funds have been credited to the student's account by contacting the One Stop in writing within 30 days after the date of the disbursement notice.

Borrower's Responsibilities—Repayment

PLUS loans will be originated with the Direct Loan Servicing Center which, in addition to information on repayment plans, provides repayment calculators to help determine how much to pay and how long it will take to repay the loan based on the plan chosen.

Approximately 7-10 business days after the first disbursement of the loan, the loan is assigned to a loan servicer who will then send information regarding the loan. Repayment of PLUS loans is managed by the loan servicer. Parents have the option of beginning repayment either 60 days after the loan is fully disbursed, or defer until six months after the student ceases to be enrolled on at least a half-time basis. Interest accrues as soon as the first disbursement is made, including periods of loan deferment. Parent PLUS Loan borrowers should contact their loan servicer if they wish to defer repayment on their PLUS Loans. The Federal Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Parents can review their loans, and obtain the loan servicer's contact information, at StudentAid.gov.

Parents who are experiencing difficulty making their loan payments may be able to postpone payments through a deferment or forbearance request.