The Parent PLUS Loan is a type of Direct Loan that is credit-based offered by the U.S. Department of Education. This loan is for parents of dependent students who need aid in paying for college.
Types of Parent PLUS Loan Loans
There are two types of federal direct loans: Parent PLUS and Grad PLUS loans.
Parent PLUS Loan
The PLUS loan is in the name of the parent and cannot be transferred to the student (regardless of personal payment arrangements between the parent and student). Repayment begins 60 days after the last disbursement.
Parents may request a deferment if the student is still enrolled at least half time (6 credits) or up to six months after the student is less than half time or has finished their enrollment.
Please visit the government Student Aid website to learn more on how to apply for a PLUS Loan.
Am I Eligible for PLUS Loans?
For Parent PLUS Loan:
- The parent must meet the Direct PLUS loan eligibility requirements.
- Must be a parent of legal guardian of the Madison College student enrolled in a financial aid eligible program.
- The parent’s credit history must be approved. (Some exceptions may apply.)
- The parent or legal guardian must be able to lawfully claim the student as a dependent.
- The student will need to have awarded financial aid.
Is There a Limit to How Much I Can Borrow With a Plus Loan?
Generally, the maximum PLUS loan amount depends on your cost of attendance (link to Cost of Attendance page), separate from any other financial assistance you receive.
For more information, please visit the government Student Aid website.
Key Dates for Direct Loan Borrowers
February 23, 2022 – Online request form opens for summer financial aid coverage.
April 1 – Priority Deadline for 2022-2023 FAFSA. (Apply by this date to be eligible for the greatest amount/types of assistance.)
June 30 – Deadline to have FAFSA filed to be eligible for Summer 2022 Financial aid
July 29 – Deadline for filing is July 29th, 2022.
July 31 – Deadline to submit Summer 2022 Financial Aid online request form
If you must submit additional documents (your tax information, parent/spouse's tax information, etc.) for Financial Aid Verification for the 2021-2022 year, you must do so by August 12, 2022.
Policies and Requirements for PLUS Loans
A parent must fill out and follow through the required PLUS Loan application to receive this aid. Here are the steps to apply for the Parent PLUS Loan:
- Go to studentloans.gov and, under the Parent Borrowers tab, select Apply for a PLUS Loan to access the application and conduct the credit check. If the decision is denied, the parent has the option to reapply using a co-signer. A PLUS Credit Counseling requirement applies when there is a co-signer.
- Complete the Loan Agreement for a PLUS Loan (MPN) upon an approved credit decision.
- Submit the PLUS Loan Request to Madison College's Financial Aid Office for awarding purposes.
Interest starts accruing on the loan at disbursement. Interest rates are subject to change every year on July 1 when a new loan has been disbursed.
Loans are disbursed through the student’s account via myMadisonCollege to pay the balance of any owed tuition and fees. Any funding left over will be refunded directly to the parent in the form of a check.
We disburse funds to student accounts weekly, generally on Tuesdays. Some exclusions may apply. Funds are disbursed to accounts for which all documents have been received and processed.
No disbursement during the weeks between aid years (August 29, 2022 through September 9, 2022) and during the week of winter campus closure.
Steps After Receiving Financial Aid Award Notification Letter
- After receiving your Award Offer Notification in your student email, you will need to log in to your myMadisonCollege account and accept or decline your awards. Awards include both the fall and spring semester, and you will need to accept enough for the entire aid year.
- Complete Entrance Counseling to better understand your responsibilities and obligations by borrowing student loans.
- Complete a Subsidized/Unsubsidized Master Promissory Note (MPN). The MPN is a legal document in which you are promising to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.
Visit studentaid.gov for more information on PLUS Loans.