• Undergraduate Federal Parent PLUS Loans

    Parent PLUS loans are unsubsidized loans used to bridge any gap between a student’s estimated cost of attendance and all other financial aid. Loan approval is subject to credit criteria established by the U.S. Department of Education. Fees and interest rates are slightly higher than for Federal Direct Loans, and interest accrues from the date of the first disbursement of funds.

    Eligibility for Federal Parent PLUS Loans

    For your parent(s) to qualify for a Parent PLUS loan, you must be enrolled in an undergraduate degree program at least half-time (six credits) and must be a dependent for tax reporting purposes of the parent who is requesting the loan. A qualifying parent must be biological, adoptive, or a step-parent who lives with the custodial parent. Grandparents, legal guardians, and other family members do not qualify.

    Note: Undergraduate students who are not dependent on a parent may be able to obtain additional unsubsidized loan funds from the William D. Ford Direct Student Loan program to make up the difference between their financial aid packages and cost of attendance. Parent PLUS loans are not available for graduate study (see Graduate PLUS loans).

    Application Process

    • You must file FAFSA.
    • You and your family should compare your estimated cost of attendance with your New School financial aid offer. Your parents may borrow up to the remaining amount of your unmet need (your cost of attendance less the amount of aid you have accepted from The New School).
    • Your parent must fill out a "Request for a Direct PLUS loan" on studentloans.gov indicating the amount they propose to borrow.
    • If your parents are approved, your parent(s) must submit the PLUS loan promissory note on studentloans.gov indicating the amount they propose to borrow. Our federal school code for loans is 020662. By submitting the application, they consent to a credit check and permit the Department of Education to inform The New School of the results.  If your parents are not approved, please contact Student Financial Services.
    • When Student Financial Services receives notification that the Master Promissory Note (MPN) is on file and credit has been approved, we will add the Parent PLUS loan to your aid package and send you a revised award letter.
    • Funds will be disbursed directly to The New School by the Department of Education. You and your parents will be notified when these funds have been applied to your account.
    • Please monitor the status of your Parents PLUS loan online at my.newschool.edu to ensure that your financial aid file is complete.

    The Amount Your Parent Can Borrow

    Borrowers can request up to the student’s cost of attendance less any federal direct loans and all other financial aid. In the event that an Undergraduate Parent PLUS loan applicant is denied based on the parent’s credit rating, the dependent student will be permitted to borrow additional unsubsidized Direct Loan funds.

    Fees, Interest, and Repayment Policies

    There is an origination fee of 4.292 percent. The fees are proportionally deducted prior to disbursement. Interest is currently fixed at 7.21 percent and begins accruing from the date of the first disbursement to the university. For official fee and interest rate information, go to the Department of Education website.

    Repayment to the U.S. government is the responsibility of the parent whose name is on the loan. These loans must normally be repaid within 10 years with repayment set to begin 60 days after the final disbursement of each loan. However, repayment of Parent loans may be deferred while a student is still in school by filing the Loan Deferment Request Form with the loan application.

    Disbursement Policy

    PLUS loans are normally disbursed to the university in two payments for the academic year (for fall and spring semester) or in one payment if funds are for only one semester or for summer term enrollment. Please keep this in mind in deciding how much money you need to borrow. If you prefer a different disbursement schedule, you must notify Student Financial Services in writing when you make your loan application.

    PLUS Loans require credit approval, which is valid for only 180 days. To avoid disbursement delays and an additional credit review, we recommend that PLUS borrowers complete the application process AFTER June 15 for fall/spring term (academic year) loans and AFTER November 15 for spring or summer term-only loans.

    Any funds remaining after the university has satisfied the student’s account payable for the academic term will be refunded to the borrower (the parent) unless the borrower gives written notice to Student Financial Services requesting refund to the student.

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