Federal Direct PLUS Loans

Federal Direct Parent Loan for Undergraduate Students (PLUS)

A FAFSA must be filed on behalf of the student listing TU’s school code (003185) before TU can determine eligibility for this loan program. Only a parent (or a stepparent whose income was supplied on the FAFSA) can apply for this loan.

To request a PLUS loan the parent must go to studentloans.gov, click on “Request Direct PLUS Loan” and select Parent PLUS. The parent will have the option to e-sign the PLUS eMPN (electronic Master Promissory Note) at the completion of this process or e-sign it at a later date at the above website. The PLUS eMPN is similar to the Direct Stafford eMPN including its use for multiple loans for the same borrower. The PLUS eMPN is valid for loans made for a dependent student and is valid for ten years. To obtain loans for another dependent student, the parent must complete another PLUS loan application and PLUS eMPN. PLUS loans are administered by the Department of Education and approval is based on the absence of adverse credit within the last five years, not credit worthiness. The Department of Education will run a credit check and notify the parent and the TU Office of Student Financial Services of the credit decision. If the PLUS loan is denied, TU will process an additional unsubsidized Stafford loan in the student’s name. Freshmen and sophomores may have up to $4000 annually. Juniors and seniors may have up to $5000 annually. If the PLUS loan is later approved due to a credit appeal or an approved endorser, the additional unsubsidized Stafford loan will be cancelled. If approved with an endorser, the PLUS eMPN cannot be used for multiple PLUS loans but is only good for the academic year or term the endorsed loan was approved for by the Department of Education.

PLUS loans have a fixed interest rate of 7.9%, will have a fee of 4% deducted from each disbursement and interest will begin accruing at the time of disbursement. PLUS loans are made in two equal disbursements and at least one-half of the loan period must elapse before the second disbursement can be released. The PLUS loan amount will credit to the student’s account no earlier than the first day of class each semester. Loan funds in excess of student charges will be refunded to the student. A notification is mailed to the parent’s address when funds are credited. A parent has the right to cancel all or any portion of the loan within 14 days of the loan crediting the account. Repayment on a PLUS loan begins once the loan is fully disbursed. The first payment is due 60 days after the final disbursement. A parent may choose to defer repayment while the student for whom the parent borrowed is enrolled at least half-time. Repayment will begin six months after the student ceases at least half-time enrollment. Please visit studentloans.gov for repayment plans.

Important Loan Information for Credit Based Loan Alternatives  

   Federal Direct Graduate PLUS Loan

A FAFSA must be filed before TU can determine eligibility for this loan program.

To request a GPLUS loan the student must go to studentloans.gov, click on “Request PLUS Loan” and select Graduate PLUS. The student will have the option to e-sign the GPLUS eMPN (electronic Master Promissory Note) at the completion of this process or e-sign it at a later date at the above website. The GPLUS eMPN is similar to the Direct Stafford eMPN including its use for multiple loans for the same borrower. The GPLUS eMPN is valid for ten years and is a separate eMPN from the Direct Stafford loans. GPLUS loans are administered by the Department of Education and approval is based on the absence of adverse credit within the last five years, not credit worthiness. The Department of Education will run a credit check and notify the student and the TU Office of Student Financial Services of the credit decision. If the GPLUS loan is denied and later approved with an endorser, a new GPLUS eMPN must be e-signed and is only good for the academic year or term the endorsed loan was approved for by the Department of Education.

GPLUS loans have a fixed interest rate of 7.9%, will have a fee of 4% deducted from each disbursement and interest will begin accruing at the time of disbursement. Borrowers are required to complete entrance counseling and e-sign the eMPN (electronic Master Promissory Note) prior to receiving their first loan disbursement and complete exit counseling upon leaving the university. Students may complete the entrance counseling and the eMPN through the direct loan website at studentloans.gov.  GPLUS loans are made in two equal disbursements and at least one-half of the loan period must elapse before the second disbursement can be released. The GPLUS loan will credit the student’s account no earlier than the first day of class each semester. Loan funds in excess of student charges will be refunded to the student. A notification will be mailed to the student’s local address when funds credit. A student has the right to cancel all or any portion of the loan within 14 days of the loan crediting the account. Repayment on the GPLUS loan begins six months after the student ceases at least half-time enrollment. Visit studentloans.gov for repayment plans.

Important Loan Information for Credit Based Loan Alternatives for Graduate/Law Students