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Loans

federal direct parent plus loan

 

The Federal Direct Parent PLUS Loan is a low-interest loan that allows a parent of a dependent student to assist in paying for the student's college education. Since a Federal Direct Parent PLUS Loan is a non-need loan, it represents a viable borrowing option for the parent, regardless of the student's federally determined financial need.

Since the borrower of a Federal Direct Parent PLUS Loan is the parent of the student, the parent-borrower must successfully complete the application process before K-State may disburse a Federal Direct Parent PLUS Loan to the student.

Find more information about the Federal Direct Parent PLUS Loan. Calculate your repayments with the repayment calculator.

If your parent wishes to borrow a Federal Direct Parent PLUS Loan, he/she should complete, sign, and return the application below to our office, to begin the process.

2011-2012 Parent PLUS Direct Loan Application

2010-2011 Parent PLUS Direct Loan Application

 

Interest Rates

The interest rate for Direct PLUS Loans is a fixed rate of 7.9%.  Interest is charged from the date of the first disbursement until the loan is paid in full.

Origination Fee

There is an origination fee of 4.0% of the loan amount, deducted proportionally each time a loan disbursement is made.

Up-Front Interest Rebate

You may receive an up-front interest rebate on your Direct PLUS Loan. The rebate is equal to a percentage of the loan amount that you borrow. This is the same amount that would result if the interest rate on your loan were lowered by a specific percentage, but you receive the rebate up front.

To keep an up-front interest rebate that you receive on your loan, you must make all of your first 12 required monthly payments on time when your loan enters repayment. “On time” means that payment is received no later than 6 days after the due date.

You will lose the rebate if you do not make all of your first 12 required monthly payments on time. If you lose the rebate,  the rebate amount will be added back to the principal balance on your loan account. This will increase the amount that you must repay.

Federal Direct Parent PLUS Loan Eligibility

  • The parent-borrower must be the student's biological, adoptive, or step-parent (step-parent must be listed on the student's Free Application for Federal Student Aid (FAFSA)).
  • To determine Federal Direct Parent PLUS Loan eligibility, K-State requires that the student and his or her family submit a FAFSA.
  • The parent-borrower of a Federal Direct Parent PLUS Loan must pass a credit check as part of the application process.