How to Apply for Parent PLUS Loan: A Step-by-Step Guide
Applying for a Parent PLUS Loan can be a crucial step in financing your child’s education. This federal loan program is designed to help parents pay for their dependent undergraduate students’ educational expenses. If you’re considering applying for a Parent PLUS Loan, here’s a step-by-step guide to help you navigate the process.
1. Determine Eligibility
Before you begin the application process, it’s important to understand the eligibility requirements for a Parent PLUS Loan. To be eligible, you must be the biological or adoptive parent of a dependent undergraduate student enrolled at least half-time in an eligible program at a participating school. Additionally, you must not have an adverse credit history, which typically means you have not declared bankruptcy within the last five years, have not been 90 days or more delinquent on any federal debt, and do not have a default on a federal student loan.
2. Complete the FAFSA
To apply for a Parent PLUS Loan, you must first complete the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for federal financial aid, including grants, scholarships, and federal student loans. Make sure to include your child’s information on the FAFSA and list them as a dependent.
3. Review the Financial Aid Award Letter
Once you submit the FAFSA, your child’s school will send you a financial aid award letter. This letter will outline the types and amounts of financial aid your child is eligible for, including any Parent PLUS Loans. Review the award letter carefully to ensure that the Parent PLUS Loan is listed as an option.
4. Apply for the Parent PLUS Loan
To apply for a Parent PLUS Loan, you will need to complete the online application through the U.S. Department of Education’s website. Log in to your Federal Student Aid account or create a new account if you don’t already have one. Once logged in, select the “Request a Parent PLUS Loan” option and follow the instructions provided.
5. Complete the Master Promissory Note (MPN)
After you submit the Parent PLUS Loan application, you will need to complete a Master Promissory Note (MPN). This legally binding document outlines the terms and conditions of your loan, including the repayment schedule and interest rate. The MPN is valid for up to 10 years, so you only need to complete one for each loan period.
6. Sign the MPN
To finalize the loan application process, you must sign the MPN. You can sign the MPN electronically through your Federal Student Aid account. Make sure to carefully review the terms and conditions before signing.
7. Disburse the Loan
Once you have completed the application and signed the MPN, the loan will be disbursed to your child’s school. The school will then apply the funds to your child’s educational expenses, such as tuition, fees, and room and board.
By following these steps, you can successfully apply for a Parent PLUS Loan to help finance your child’s education. Remember to keep track of all loan documents and communicate with your child’s school to ensure the loan is processed correctly.
