Federal Direct PLUS Loans

Federal Direct Parent (PLUS) Loans for Undergraduate Students

A FAFSA must be filed on behalf of the student (listing TU’s school code 003185) before TU can determine eligibility for a Direct Parent PLUS Loan (PLUS). Only a parent (or a stepparent whose income was supplied on the FAFSA) of a dependent student can apply for this loan. (Note: An independent undergraduate student only has the option to apply for a private loan.) To request a PLUS loan, the parent must log in to studentloans.gov, click on “Request a Direct PLUS Loan” and select “Parent PLUS.”

The PLUS loan is administered by the U.S. Department of Education and approval is based on the absence of adverse credit within the last five years, not credit worthiness. The U.S. Department of Education will run a credit check and notify the parent and the Office of Student Financial Services of the credit decision. If the PLUS loan is approved, the parent may e-sign the PLUS electronic Master Promissory Note (eMPN) at the completion of the application process or e-sign it at a later date at the above website. The PLUS eMPN is valid for loans made for a dependent student and is valid for ten years. If the PLUS loan is denied, the student has the option of accepting an additional Direct Unsubsidized Loan up to $4,000 annually for freshmen and sophomores or up to $5,000 annually for juniors and seniors. If the PLUS loan is later approved due to a credit appeal or an approved endorser, the additional Direct Unsubsidized Loan will be cancelled and the PLUS loan processed. 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 U.S. Department of Education. If approved with a credit appeal, a new PLUS eMPN is not required.

The current interest rate for a PLUS loan is determined each June for new loans being processed for the upcoming award year, which runs from July 1 to the following June 30. The fixed interest rate will be for the life of the loan. Interest begins accruing at the time of disbursement. The government will deduct an origination (processing) fee from each PLUS loan disbursement. Refer to studentloans.gov for the actual interest rate and origination fee for your PLUS loan.

A PLUS loan is made in two equal disbursements for a two-semester loan. 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. A disbursement funds letter is mailed to the parent’s address once funds are credited. PLUS loan funds that exceed student charges will be refunded to the parent or student.   A parent has the right to cancel all or any portion of the loan within 14 days of the loan crediting the student’s 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 and for an additional six months after the student ceases to be enrolled at least half-time. Refer to studentloans.gov for repayment plans.

Important Loan Information for Credit Based Loan Alternatives for Undergraduates  

Federal Direct Graduate PLUS Loan (GPLUS)

A FAFSA must be filed before TU can determine a graduate/law student’s eligibility for a Graduate PLUS (GPLUS) Loan. To request a GPLUS Loan, go to studentloans.gov, click on “Request a Direct PLUS Loan” and select “Graduate PLUS.”

The GPLUS loan is administered by the U.S. Department of Education and approval is based on the absence of adverse credit within the last five years, not credit worthiness. The U.S. Department of Education will run a credit check and notify the student and the Office of Student Financial Services of the credit decision. If the GPLUS loan is approved, the student may e-sign the GPLUS electronic Master Promissory Note (eMPN) at the completion of the application process or e-sign it at a later date at the above website. The GPLUS eMPN is similar to the Direct Unsubsidized Loan 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 Unsubsidized Loan. If the GPLUS loan is denied and later approved with an endorser, the GPLUS eMPN cannot be used for multiple PLUS loans. 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 U.S. Department of Education. If the GPLUS loan is denied and later approved with a credit appeal, a new GPLUS eMPN is not required.

The current interest rate for a GPLUS loan is determined each June for new loans being processed for the upcoming award year, which runs from July 1 to the following June 30. The fixed interest rate will be for the life of the loan. Interest begins accruing at the time of disbursement. The government will deduct an origination (processing) fee from each GPLUS loan disbursement. Refer to studentloans.gov for the actual interest rate and origination fee for your PLUS loan.

Prior to receiving the first GPLUS loan disbursement, the GPLUS eMPN must be completed as well as entrance counseling. Entrance counseling may be completed at studentloans.gov. A GPLUS loan is made in two equal disbursements for a two-semester loan. 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. A disbursement funds letter will be emailed to the student’s TU email when funds credit. Loan funds that exceed student charges will be refunded to the student. 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 to be enrolled at least half-time. Exit counseling is required upon leaving the university. Refer to studentloans.gov for repayment plans.

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

 

Any loans listed above that the student and/or parents apply for will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guarantee agencies, lenders, and schools determined to be authorized users of the data system.