How much may my parents borrow?
Your parents may borrow up to the yearly cost of attendance at Queens College minus any estimated or actual financial aid you may be receiving. There are no annual or aggregate loan limits.
Are there any limitations on direct PLUS loan eligibility?
Yes. To be eligible for a direct PLUS loan, your parents will have to pass a credit check. If they do not pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass a credit check, agrees to endorse the loan, that is, promises to repay it if your parents fail to do so. Your parents might also qualify for a loan without passing a credit check if they can demonstrate that unusual financial circumstances exist.
You and your parents must also meet the other general eligibility requirements for federal student aid as described in this booklet in the section on Pell.
How do my parents apply for a direct PLUS loan?
- First, you and your parents must complete a FAFSA and wait until the results are reported to the college.
- The student then will come to the Queens College Financial Aid Office and complete a direct loan application.
- After the direct loan amounts are determined, the parents fill out a Federal Direct PLUS Loan Request and submit it to the Financial Aid Office. Your parents will be sent a PLUS application and promissory note, which must be returned for the loan to be processed.
Do my parents need to find a lender?
No. The lender for all Direct PLUS Loans is the U.S. Department of Education. The college assists the federal government in administering direct PLUS loans by distributing and processing loan applications and delivering the loan funds.
How is this loan disbursed?
The proceeds of the loan will be sent to the college in two installments, neither of which will exceed half the loan amount. The funds must first go to pay any outstanding tuition and fee balance. The remainder will be issued in check form to your parents (or to you if your parents so authorize). Any remaining loan funds must be used for your educational expenses.
What is the interest rate on a direct PLUS loan?
It varies, but can never be more than 9%. The interest rate is adjusted each year on July 1 and is calculated according to a federal formula. Your parents will be informed of later changes in the interest rate. Interest is charged on the loan from the day the first disbursement is made until the day the loan is paid in full.
Is there a charge for a direct PLUS loan?
Your parents will pay a fee of up to 4% of the loan, deducted proportionately each loan disbursement. A portion of this fee goes to the federal government to help offset administrative costs.
When do my parents begin paying back the loan?
Repayment on direct PLUS loans begins within 60 days of the final disbursement. There is no grace period for this loan. Your parents will begin repaying both principal and interest while you are still in school.
How do my parents pay back the loan?
Your parents can choose from standard, extended, or graduated repayment plans (please refer to the Direct Subsidized Loan section for a description of these three repayment options). The Income Contingent Repayment Plan is not offered to parent borrowers.
Where do my parents send their loan payments?
Your parents send their direct PLUS loan payments to:
Direct Loan Payment Center
P.O. Box 530260
Atlanta, GA 30353-0260
My parents are having trouble making their direct PLUS loan payments. What can they do?
Your parents should contact the Direct Loan Servicing Center. Under certain circumstances, your parents may qualify for a deferment or forbearance. With a deferment, your parents may stop making payments for a time. With forbearance, their payments can be either postponed or reduced. Interest continues to accumulate during a deferment or forbearance period and will be capitalized (or added to the principal) if your parents choose not to make interest payments. If your parents have defaulted on their loan, they cannot receive a deferment or forbearance.
See the Student Loan Deferment and Cancelation Summary for a complete list of deferments for direct PLUS loan borrowers.
Can my parents ever get out of repaying this loan?
Certain exceptional circumstances, such as the borrower's death or permanent disability, can result in the discharge or cancelation of your parents' direct PLUS loan. A discharge releases them from all obligation to repay. A complete list of discharge conditions can be found in the Student Loan Deferment and Cancelation Summary. Remember that this loan cannot be discharged because you didn't complete your program of study or couldn't find a job after graduation.
Repayment assistance may be available to your parents if you serve in the military. For more information about repayment assistance, consult your recruiting officer.
For more information about discharge or repayment assistance, your parents should contact the Direct Loan Servicing Center.