Federal Plus Loans

Eligibility

Federal Direct Parent PLUS loans are non-need based loans to help parents finance their student's education. They are available to parents of undergraduate students attending BW at least half-time and maintaining satisfactory academic progress. Parent PLUS loan borrowers must be U.S. citizens or eligible non-citizens. Eligibility for the Parent PLUS loan is based on creditworthiness, regardless of borrower's income.

Maximum Annual Loan Limit

• Cost of education less any other financial aid received by the student.
• Parents are encouraged to budget their costs for the entire academic year when determining the Parent PLUS loan amount needed.

Interest Rate

View current interest rates for the PLUS loan on the FSA website.

Fees

There is a loan origination fee for Federal PLUS loans. View the current loan fee on the FSA website.

Loan Disbursement

Parent PLUS loan amounts are divided equally by academic terms of enrollment on file with Baldwin Wallace. For example, if a parent receives a $4,000 Parent PLUS loan and the student is enrolled during the fall and spring semesters, the parent will receive a $2,000 disbursement (less fees) in the fall and a $2,000 disbursement (less fees) in the spring.

Repayment

The repayment period of a PLUS Loan begins on the day the loan is fully disbursed and interest begins to accrue on the day the first disbursement is made. For example, a parent borrowing a Parent PLUS Loan at the beginning of the student's freshman year enters loan repayment when the loan is fully disbursed, typically making the first payment for that particular loan in February/March of the student's first year. There are no prepayment penalties.

Deferment

Parents may postpone repayment on a Parent PLUS loan until six months after the dependent student leaves school or drops below half time. During the postponement period, parents receive interest statements and have the option to pay the accrued interest. If parents choose not to make interest payments, the unpaid accrued interest will be capitalized. For additional information see Parent PLUS Deferment Information from the Department of Education.

How do I apply?

Parent PLUS loan applications for the upcoming academic year will be available in May and can be processed at any time during the academic year. Borrowers should allow 4-6 weeks of loan processing time for funds to be credited to their student's billing account, especially during the July/August peak loan processing season.

You will need your FSA ID number to complete this process. If you do not have an ID, read these instructions on how to create a FSA ID. Since this is a parent loan, the application requires the parent borrower's sign-in and application information.

STEP 1: Visit the FSA website. Click the "Log In" button to sign in with your parent FSA ID.

STEP 2: Follow the instructions to complete the credit-based application. Upon submission, you will be notified if your credit is approved/declined.

If the loan is approved...

STEP 3: Click on "Complete Master Promissory Note" if you do not already have a valid PLUS Master Promissory Note (MPN) for BW on file with the Department of Education. The MPN allows eligible borrowers to apply for multiple loans, over multiple years, for a single dependent child.

STEP 4: The Department of Education will transmit loan information to BW.

STEP 5: BW will originate the loan and disburse the funds to the student's BW account before the start of the semester.

What if my Parent PLUS Loan is denied?

If a Parent PLUS Loan is denied, a student can request an additional Direct Unsubsidized Loan by submitting the Federal Direct Loan change form on our forms page. Another option would be for the PLUS loan borrower to obtain an endorser, which is someone who is willing to repay the Direct PLUS Loan if the borrower does not.

Federal Direct PLUS Loan Change Request Form

The Federal Direct PLUS Loan change request form, available on our forms page, is used to submit requests to change Parent PLUS Loans that have already been approved through the Department of Education. When changing the amount of a Parent PLUS Loan, please keep in mind the maximum annual loan limit and fees listed above.

ADDITIONAL RESOURCES

Information on Federal Direct PLUS Loans (from the Department of Education)

Repayment calculator - This tool calculates an estimated monthly payment.

Federal Loan consolidation - This is for Parent PLUS borrowers who have PLUS loans with different lenders/servicers and wish to combine their PLUS Loans into one consolidation loan.

Loan servicing - This is for information regarding Direct Loan repayment.

Federal ID Code

BW's Federal ID Code: 003014

Let Us Help You

Contact us and we'll answer your questions.