Parent Information and Parent Direct PLUS Loans
The amount and type of financial aid a student is awarded depends on the student's request, the date of application, and the student's financial need as determined by the FAFSA. Contributions expected from the student and from his or her parents are considered in establishing financial need and determining eligibility for financial aid. The expected family contribution (EFC) is calculated using a mathematical formula established by Congress. This formula analyzes a number of factors to determine financial need, including the following:• parents' income and assets;
• the age of the oldest parent;
• the number in the household;
• the number attending college; and
• the student's income and assets.
To determine eligibility for aid, the total expected family contribution is subtracted from the total cost of attendance. The figure remaining is the student's maximum eligibility for need-based federal student financial aid and scholarships. However, federal student aid and institutional scholarships are limited, and students should not assume that their full need will be met. Students should be aware that supplementary programs, such as the Parent Direct PLUS Loan may be a necessary part of funding their education.
EFC Calculator
Click here to access the EFC Calculator to get an early look at about what you can expect when you fill out the FAFSA. This is a tool that can be very helpful in getting a pre-FAFSA determination. The Expected Family Contribution (EFC) is how much you will be expected to contribute to college costs, and it helps determine how much financial need you have.
Parent Direct PLUS Loan: What are the eligibility requirements?
You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing. Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, your child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional-degree student, or a ward of the court. You cannot have an adverse credit history (a credit check will be done). In addition, you and your child must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
How much can a parent borrow? There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. The school will help determine the actual amount you may borrow.
How to Apply for a Federal PLUS Loan
The PLUS Loan application process for parents is listed below. Parent borrowers must apply and qualify for the PLUS loan annually.
Step 1. Your student must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is the Department of Education's online application which is required for anyone requesting federal financial aid. Once the student has completed this form the information will be sent to your school's financial aid office.
Step 2. Determine the amount of loan debt you can afford. Use the Parent Loan Repayment Calculator to determine how much your loans will cost and what your monthly repayment amount will be.
Step 3. This step is for the 2011-2012 academic year: You will want to Complete the "Request a PLUS Loan" option on the studentloans.gov website after June 1st. Please be sure that the same parent who completed the Master Promissory Note with the Department of Education (DOE) is the same that completes the "Request a PLUS Loan".
Step 4. Complete the Federal Direct PLUS Loan Application/ Master Promissory Note on the Department of Education's web site. When you complete the Loan Application/Master Promissory Note, you will authorize the Department to conduct a credit check. If you are denied the PLUS loan because of an adverse credit history, you may still be eligible to borrow a PLUS loan with a co-signer. If you can't find a co-signer, then your dependent student becomes eligible for additional unsubsidized Stafford loan funds.
Step 5. You will receive an email confirmation from HCU’s Office of Financial Aid. You must reply and confirm acceptance of your loan before your loan funds will be certified by the school.
Note: Credit checks and loan approval are only valid for 90 days. Please do not apply for a PLUS loan sooner than 75 days before the start of classes. If your loan approval expires, you loan funds will not disburse.
For more information, please click here where you can find more details about applying for a Parent PLUS loan.
