Lake Superior State University
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Financial Aid Office

FEDERAL DIRECT PARENT PLUS LOAN

If you are interested in the Federal Direct Parent Plus Loan, your maximum loan amount for the year was shown on the Official Offer of Award.

All students may be eligible for Federal aid. LSSU recommends that students borrow their maximum eligibility in Federal loans before applying for alternative loans (private education loans) because Federal loans generally have better terms, conditions and borrower benefits than alternative loans. File a FAFSA at www.fafsa.gov  to apply for federal financial aid including federal loans. 

To Initiate Your Loan

First, return your signed award letter indicating your acceptance of the offer. Your parent may either complete an on-line PLUS application at www.studentloans.gov OR fax or mail a paper Plus Loan Application form to LSSU's financial aid office. Do not complete both the paper application and an on-line application; choose one or the other. For fall/spring 2013-14, use this link: 13-14 PLUS Loan
Both application methods will generate a credit check on the parent who is taking out the loan. The credit check is valid for 90 days.  If your parent's application is denied, contact the Financial Aid Office to discuss your options.

Second, if this is your parent's first Plus Loan, the parent who is taking out the loan must complete the Master Promissory Note. When utilizing the on-line application, this is part of the application process.

Please note Plus Loan applications must be completed every year as part of the Federal Student Aid Application process.

Disbursement

The approved loan (less fees) will disburse into the student's account after all steps are completed.  Please allow 10 days for processing.  Loans will be divided in half, with 50% of the loan disbursing at the beginning of the period and 50% at the mid-point.  For fall/spring loans, one half will disburse in the fall and one half will disburse in January.

Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible. The interest rate is fixed, and is set annually on July 1. The interest rate for 2013-14 is 6.41% .

There will be a 4.204% origination fee deducted from each of two disbursements made in a school year.

Repayment

For PLUS loans that are first disbursed on or after July 1, 2008, Parent PLUS borrowers have the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least a half time basis. Parent borrowers can select the deferment option during the on-line application or call their loan servicer to request an in-school deferment. The loan servicer will be identified to the parent after the loan has been processed.   Parents can also download a Parent PLUS deferment form at their servicer's website. This should be done AFTER the first half of the loan has disbursed to the student's account.

Due to the processing time, loan requests can not be honored during the last two weeks of the semester. Please submit any requests for alternative or direct loans to the LSSU Financial Aid Office before the last two weeks of the semester.

Disclosure Statements

Click here for sample disclosure statement and borrower rights for PLUS loans: plusplain, plusrights, plusds

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