Franklin & Marshall College Franklin & Marshall College

Financial Aid

Financing Options

Federal PLUS Loans

Federal Direct Parent Loan Information

Federal Direct PLUS Loan for parents  is a popular option for families who wish to use a low-interest loan as a means of covering their student's college expenses.   A parent can borrow up to the total cost of education less any financial aid/loans the students has been awarded.   

Who Is Eligible to Borrow a Federal Direct PLUS loan?  A parent or legal guardian of a dependent undergraduate student enrolled at least half time.  Both parent and student must be US citizens or eligible non-citizens, must not be in default on a federal student loan and may not owe a refund on a federal educational grant. 

Advantages to Borrowing a Federal Direct PLUS loan.....

  • Easy application process; sign Master Promissory note once
  • Parents must be creditworthy (not based on debt to income ratio)
  • Completion of the FAFSA is required in order to apply for a PLUS Loan.
  • Parents without a FAFSA borrowing a  loan for a male students must verify registration with Selective Service.
  • The  interest rate is fixed at 7.9% and loan fees of 4% are deducted from loan amount sent to the school.
  • 10 year repayment term with flexible repayment plans available
  • Immediate repayment begins 45 days after loan is fully disbursed
  • Repayment can be deferred until 6 months after the student graduates or drops below half time enrollment
  • Interest may be tax deductible; for more details click here
  • No penalty for early repayment
  • Federally insured against death or permanent disability 

How to Apply for the Federal Direct PLUS loan for parents:

  1. Go to www.studentloans.gov
  2. Sign In with PARENT social security number, PARENT date of birth and PARENT federal PIN.     If you do not have a PIN you can register for a PIN on the website.
  3. Under Plus Loan Process click on Request Plus Loan and complete the information.  All the information and credit decision will be transmitted to our office.
  4. You will be prompted to sign the Master Promissory Note (MPN)

The school will originate your loan and schedule two equal disbursements