Loans to Parents
The Federal PLUS (Parent Loan for Undergraduate Students) Loan Program is available to assist parents with the financing of their student’s educational expenses. This loan allows a parent to borrow up to the total cost of education less the amount of financial aid that has been awarded to the student.
For PLUS loans borrowed before July 1, 2006, the interest rate is variable, with a cap of 9%. For loans borrowed after July 1, 2006, the interest rate is fixed at 8.5%. Interest begins accruing from the date of the first disbursement (fall semester) with repayment beginning within 60 days of the final annual disbursement (spring semester). The funds are delivered electronically to the student’s school account. In most cases, a 3% origination fee is deducted prior to each disbursement.
Although this is a federally regulated program, lenders may differ in repayment incentives and interest rate reductions. Please visit their web sites—some of which are listed below—and investigate these differences.
The PLUS Loan Pre-Approval Process, which includes a required credit check, will determine your eligibility for this program. Several lenders are listed below for your convenience. You may apply directly through their web site or by phone (please apply with ONLY one lender to avoid multiple credit checks). You will be notified (possibly immediately) and, if approved, a PLUS loan application/promissory note will be forwarded to you. You can then determine the amount you wish to borrow, complete the form, and return it directly to Centenary’s Financial Aid Office for certification.
If you are interested in borrowing through a lender not listed, please contact that lender directly. You will still need to complete the parent loan application and forward it to our office for certification. We would need complete information on the lender (name, address, phone, lender code).
In the event you are not eligible to borrow under the PLUS Loan Program, your student has the option to apply for an additional Unsubsidized Stafford Loan (additional eligibility for a freshman is $4,000/yr). You should notify the Financial Aid Office if you choose this option. Please contact our office should you have any questions concerning this program.