Parents or step-parents of undergraduate dependent students can choose to utilize the Federal Parent PLUS loan to pay educational expenses not already covered by other financial aid. PLUS loans are not subsidized and parents are responsible for all interest that accrues on the loan from the day it is disbursed until the loan is paid-in-full. Any interest paid on the PLUS loan is tax deductible. Students must be enrolled in a minimum of 6 credits.
Interest Rates & Processing Fees:
Parent borrowers must complete the entire Parent PLUS Loan application process as outlined below:
1. Determine the amount you need to borrow
2. Complete the Federal Direct Parent PLUS Loan Application
3. Complete the Parent PLUS Master Promissory Note (MPN)
4. Funds disburse to your student's account
* GVSU does not determine PLUS approval and cannot guarantee availability of other resources to cover your students educational costs. For more information about the credit approval/denial process visit www.studentloans.gov and select "Credit Check" under "FAQ".
Parent PLUS loans are applied to the student's account before any other student aid or payments. If the Parent PLUS loan is greater than the total charges on the account, a refund will be sent to either the student or the parent, depending on what has been authorized. If a credit card payment has been made prior to the parent plus loan which results in a credit balance, the credit card will be refunded.
**Please make note that if you checked the deferment box on the PLUS loan application this does not automatically defer the payments. The parent must complete the requirements for a deferment with the loan servicer.**
If you would like to request a deferment you can contact your Federal Direct Loan servicer and request a deferment. If you do not know your loan servicer, you can retrieve Federal Direct Loan information online as well as access your loan history by going to the National Student Loan Database and using your Federal Student Aid PIN. For loan servicer contact information please see the list of Federal Loan Direct Loan Servicers.
If you choose an alternative loan, most often you are the cosigner for the student; not the primary borrower. Learn more about alternative loans.