Direct Parent PLUS Loan (PLUS) (must be repaid with interest)
The parent of a dependent student enrolled in a FAFSA-eligible program at MUD may apply for a Direct Parent PLUS Loan. Parent cannot be in default on a federal student loan and must pass a credit check. Parent may obtain an endorser to meet credit requirement. The Parent PLUS Loan is a non-need-based loan. The interest rate is fixed for the life of the loan at 5.30% for loans first disbursed July 1, 2020 through June 30, 2021. The borrower is responsible for all interest. An origination fee of 4.228% will be assessed. The parent borrower is responsible for repayment. Repayment begins with sixty days of the final loan disbursement. Parents may make a request to the lender to defer payments while the student is enrolled at least half-time and for the 6 months after student ceases enrollment. Minimum monthly payment is $50 per month. Standard repayment period is ten years.
To apply for a Direct Parent PLUS Loan, the student must first complete a Free Application for Federal Student Aid (FAFSA). The parent must complete a Parent PLUS Loan Master Promissory Note.