NEWS & EVENTS
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Federal Direct Parent PLUS Loan
  • Applying for a Direct Parent PLUS Loan

    Direct Parent PLUS Loan Qualifications

    In order to determine if you are eligible to borrow a Federal Direct PLUS Loan for your son or daughter attending Capital University, review the following requirements:

    • Your student has been admitted or is currently attending Capital University.
    • Your student has applied for federal financial aid through the FAFSA.  
    • The Capital Financial Aid Office has reviewed your student's financial aid application and a financial aid award has been processed. 
    • Any verification documents requested by Capital have been completed and submitted. Parents are eligible to borrow up to the total annual cost of attendance minus any financial aid the student is eligible to receive. 
    • You understand that if your Federal Direct PLUS Loan application is approved, and your PLUS Loan Promissory Note has been completed and signed, the proceeds will be disbursed to your student's account at Capital University. 

    Submit Your Application

    Once you meet all of the conditions mentioned above, you can apply for a Direct Parent PLUS Loan. 

    Approval of your Federal Direct PLUS Loan

    If your Federal Direct PLUS Loan is approved, the Department of Education will notify Capital University of this approval. This notification typically comes to the Financial Aid Office within three business days.

    Sign Your Direct PLUS Promissory Note

    You must sign a Federal Direct PLUS Promissory Note before your loan can be fully processed. You can sign your Promissory Note online after your Federal Direct PLUS Loan has been pre-approved. You must have your Federal PIN to sign the Promissory Note online.

    If Your Direct Parent PLUS Loan is Denied

    Parent borrowers are notified immediately if their Federal Direct PLUS Loan application is denied. This information is also shared with the Capital Financial Aid Office so we can assist you with other options.

    As a result of a PLUS loan denial, students may be eligible to borrow up to $5,000 additional Federal Direct Unsubsidized Loan funds, depending on their grade level. If your son or daughter is interested in obtaining this additional loan assistance, you can indicate this on the PLUS application website once you learn of the credit decision. Your student should also contact Capital's Financial Aid Office.

    About the Federal Direct PLUS Loan

    The Federal Direct PLUS Loan is a loan for parents of dependent undergraduate students. This loan supplements the Federal Direct Student Loan Program, helping families pay the cost of post-secondary education. For more information, refer to the Student Loan Fact Sheet

    • Interest for a Direct Parent PLUS Loan is incurred and repayment begins 60 days after the loan has been fully disbursed, but you may be eligible to delay payments annually while your son or daughter is in school. 
    • Contact the servicer of your loan to make arrangements to utilize "forbearance" which defers payments. Forbearance can be requested and granted each year until the student leaves school or graduates.  
    • Repayment is 10 years with a fixed interest rate of 6.41 percent for loans borrowed during the 2013-14 academic year. The interest rate on new loans is adjusted on July 1 of each year.  
    • Federal Direct Parent PLUS Loan funds will be disbursed in the form of Electronic Funds Transfer (EFT) which are sent directly to the university.  
    • A check of the borrower's credit history is required. If a borrower's credit is not strong enough for the loan to be approved, he/she can apply with an endorser (co-signer) in an effort to get a PLUS Loan approved.