What are PLUS loans?

Parents may borrow money to pay for their son or daughter's education expenses if the son or daughter is a dependent, undergraduate student who is enrolled at least half time (six credits/billable hours). To qualify for a PLUS loan, parents must have a good credit history. PLUS loans are unsubsidized (interest is not paid by the federal government and begins accruing at the time of disbursement).

What are the eligibility requirements?

The Department of Education requires students to complete the FAFSA before parents apply for the PLUS loan

Academic transcripts from any other colleges must be forwarded to the Records and Registration for an evaluation

The parent and the student must be citizens or eligible non-citizens

The student must be enrolled on at least a half-time basis to qualify for a PLUS loan

The student must attend classes and maintain satisfactory academic progress to continue being eligible for a PLUS loan

The student must be enrolled in an approved program leading to a degree or certificate at CCBC

The student and parents must not have defaulted on any prior federal education loan or owe a refund on a Federal education grant

The parents must pass a credit check

Note: The school can refuse to certify the entire loan request, or it can certify a loan for an amount less than requested

What happens if the parents do not pass the credit check?

If the parents don't pass, they might still be able to receive a loan if they can demonstrate that extenuating circumstances exist. They can also receive the loan if someone they know, who can pass the credit check, agrees to endorse the loan and promises to repay it if the parents don't.

If this does not occur, the student may then borrow the additional amount allowed in an unsubsidized loan.

How much can parents borrow?

The loan limit is the cost of attendance (determined by CCBC) minus any estimated financial aid.

Is there a charge to get a PLUS loan?

Parents will pay a fee of up to 4 percent of the loan in addition to any interest they will pay.

Who gets the money?

CCBC will receive a check for the loan funds. Parents will endorse a disbursement check and send it back to CCBC. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The fund will first be applied to the student's tuition, fees, and other school charges. If any loan funds remain, the parents will receive the amount as a check. Any remaining loan funds must be used for the student's education.

Can the loan be canceled?

Yes, parents can cancel the loan under the terms described in the Borrowers Rights and Responsibilities Statement provided with the PLUS Master Promissory Note.

What is the interest rate on PLUS loans?

The interest rate could change each year of repayment, but does not exceed 9 percent.

When do parents begin repaying a PLUS loan?

Generally, repayment must begin within 60 days after the loan is fully disbursed.

Some recommended lenders and their codes are:

If you have used another lender in the past, it is to your advantage to continue to do so. CCBC will continue to process loans with the lenders you choose if that lender participates in the program.