Parent Plus Loans
If a dependent student's total cost of attendance cannot be met with funds in the student's name, parents may request to borrow money, up to the student's cost of attendance, through the PLUS (Parent Loans for Undergraduate Studeents) loan program. Information on applying for PLUS Loans is included in the award notification information, or parents and students may contact the financial aid office.
PLUS loans are unsubsidized, which means interest does accrue while the student is in school. PLUS loans traditionally go into repayment 60 days after the last disbursement of loan funds is made (the award is normally for two semesters, half being disbursed in fall and the other half in spring).Effective July 2008, parents have the option of delaying repayment of their PLUS Loan until the student graduates. Parents should contact their lender to discuss this option.
Parents may visit the Direct Loans website, www.studentloans.gov to begin the parent PLUS Loan process and complete a Master Promissory Note (MPN)..
If a parent has applied for, but does not qualify for a PLUS loan, the student may be eligible for an additional unsubsidized Stafford Loan. Your child should contact his or her financial aid counselor regarding this option.
A note about Parent PLUS loans: The parent borrower may indicate on the PLUS application whether excess PLUS loan funds are to be paid to the parent borrower or disbursed to the student. PLUS refunds to parents are generally issued via check. PLUS refunds to students are disbursed according to procedures established by the Office of Student Accounts.
As of fall 2010, all federal education loans are processed through the William D. Ford Direct Loan Program with the U.S. Department of Education. Parents may go to www.studentloans.gov to begin the parent PLUS Loan process.
The PLUS loan application process consists of:
- File the FAFSA each year at www.fafsa.gov.
- Apply. Initiate the parent PLUS Loan application process at www.studentloans.gov.
- Credit Check: Direct Loans performs a credit check for the parent borrower. If credit is approved, the application process continues and UNCW certifies the loan. If credit is denied, the parent borrower has the option to appeal the decision or obtain an endorser. If the parent borrower does not wish to appeal or secure an endorser for the loan, the student is eligible for an additional unsubsidized loan. The parent borrower and/or student must complete the PLUS Loan Origination Rejection Form on our Forms page to notify UNCW of the family's intentions regarding the loan process should the credit decision be a denial. Additional unsubsidized loan limits for students whose parent loans have been denied are $4,000 for freshman and sophomores and $5,000 for juniors and seniors.