Federal Parent (PLUS) Loan

WHO IS ELIGIBLE?

The Federal Parent Loan (PLUS) is a low interest federal loan for all biological or adoptive parents who are U.S. Citizens or permanent residents. Non-custodial parents are also encouraged to apply. Dependent students must also be U.S. citizens or permanent residents and the student must be enrolled at least half-time.

You must be credit worthy to receive the PLUS loan; however, many lenders offer a second review of your credit should the loan be denied the first time. In fact, you may apply for the Federal Parent Loan with a co-signer.

 

AMOUNT OF ELIGIBILITY:

Parents are able to borrow up to the cost of attendance minus any financial aid the student has received. Be aware that there may be fees deducted from the loan, which will reduce the amount disbursed to your student's Whittier College account.

 

INTEREST RATE

The interest rate is fixed at 8.5%

 

DISBURSEMENT:

The Federal PLUS Loan funds will be sent via EFT (Electronic Funds Transfer) and will be applied directly to your student's Whittier College account. All loans are funded in two disbursements (Fall and Spring). Provided that the PLUS loan has been approved and the MPN complete, the PLUS funds will be applied to your student's Whittier College account 10 days prior to the first day of class.

 

REPAYMENT:

Repayment on the PLUS loan begins 60 days after the final disbursement. There is no prepayment penalty and you may have 10 years to pay the loan back. There are various deferment and repayment options; including the opportunity to pay interest only payments. Contact your lender regarding various repayment options.

 

WHAT IF I AM DENIED?

In the event that you are denied the Federal Parent Loan, your student is eligible to receive an additional Federal Unsubsidized Stafford Loan. For more information on the Federal Unsubsidized Stafford loan, click here.

 

HOW TO APPLY FOR THE FEDERAL PARENT (PLUS) LOAN

 

Select a lender and complete the Master Promissory Note (MPN). Whittier College has provided a list of lenders for the Federal PLUS Loan that we feel offer you optimal service and pricing for your loan. Please apply online at ELM SELECT. Please compare each lender's repayment benefits and conditions. You will only need to complete the Master Promissory note once, unless you decide to choose a different lender. You have choice and are not obligated to select one of our lenders.

 

IMPORTANT: You have a choice and are not obligated to select one of our lenders. We recommend these lenders based on the quality of products and services they provide to students and families. We have carefully considered our selections in order to provide you with the best possible list of suggested lenders. However, if you wish to use another lender that is not on this list, you have the right to do so. If you decide not to use a Whittier College lender, please apply online at your lending institution of choice. Make a copy of the completed MPN and send it to the Office of Financial Aid. Be advised however, that lenders outside of the Whittier College process may cause a delay in the processing and disbursement of your loan.

Once we have received notification that the Federal PLUS loan has been approved and the Master Promissory Note complete, we will certify your Federal PLUS loan.