The Direct Parent PLUS loan is another option for students who need help paying for education related expenses. This is a federal loan offered by the U.S. Department of Education. The Direct Parent PLUS loan must be used to help pay for the students educational costs. With this loan, interest will start accruing as soon as the loan is disbursed. Interest rates are subject to change every year.
Parent must meet the Direct PLUS loan eligibility requirements. Some of which include:
If all of the eligibility criteria are met, the parent must complete a Parent PLUS Loan Request Form (PDF, 797KB). A Direct Parent PLUS loan is in the parents name and the parent will be required to repay the loan regardless of any agreement between the parent and student. The first payment is due within 60 days of disbursement. Parents may request deferment if the student is still enrolled in at least half time status (6 credits) or up to six months after the student is less than half time or is done attending school. Loan amounts may not exceed the student’s remaining financial need up to the cost of attendance, (up to $5,000 a semester, or $10,000 an aid year).
Loans are disbursed through the student’s account at Madison College to pay off any tuition and fees owed (in addition to any funds that permission had been granted). Any funding left over after paying off the balance owed will be refunded directly to the parent.
Questions? Visit askMadisonCollege to view frequently asked Financial Aid questions, submit a Financial Aid Category question, access the Financial Aid Tutorials for step-by-step instructions on related processes, or contact Madison College Financial Aid at (608) 246-6170.