Federal Parent PLUS Loans

The Parent PLUS loan is a federally backed 8.5 % interest rate loan available to all parents of dependent students. The dependent student and parent is required to file the FAFSA to be eligible for a Parent PLUS loan. All PLUS loan decisions are credit based and parents must re-apply for a PLUS loan each year. Repayment period on the Parent PLUS loan is 10 years. Payments begin 60-days after the last disbursement of each individual loan application.

Federal Parent PLUS loans can only be approved for the difference between the annual Cost of Attendance at Maryville College and the student’s scholarships, awards and financial aid. The Cost of Attendance is determined for students by the college and includes tuition, room, board, fees, average book and transportation costs.

Example:

Annual Cost of Attendance	$35,000
Student Scholarships and Financial Aid	- $25,500
PLUS Loan borrowing availability	= $9,500*

* When deciding on the amount to borrow, please allow for a 3% Federal Origination Fee and 1 % Default Fee that will be deducted from the loan amount before it is disbursed to Maryville College. Some lenders may pay default fee on behalf of borrower, check with your lender.

Parent Borrowers

You should complete the following steps in order to obtain a Parent PLUS Loan.

STEP #1

You must choose a Federally approved lender for your Parent PLUS loan. For your convenience, we have developed a Recommended Lender List.

Note: It is the responsibility of the borrower to insure their PLUS loan is properly completed and funds disbursed to Maryville College in a timely manner, regardless of the lender chosen.

STEP #2

If you choose your lender from the Maryville College Recommended Lender List, you can begin the PLUS loan pre-approval process for your selected lender by clicking the “Apply” button beside your lender on the Lender List. You will be prompted to complete some personal information and your credit will be checked at that time.

If you opt for a lender not on the list, please follow their instructions for application, credit approval and MPN signature. Remember to advise them to certify and disburse the loan to Maryville College thru the ELM Loan Processing System.

If approved

If you are a first time PLUS loan borrower, we recommend that you complete and electronically sign the MPN (Master Promissory Note) to expedite the process. When the lender has received the signed MPN, the lender will notify the school that you have an approved PLUS loan and request certification of eligible funds.

The PLUS loan will be added to your student’s Maryville College account only after the lender receives the signed MPN and notifies Maryville College that they are ready to disburse the loan.

Parents of returning students who have borrowed a PLUS loan in previous years do not need to sign a new MPN unless they have changed lenders.

If denied

If a Parent applies for and is denied a Parent Plus loan, the dependent student may be eligible for additional Federal Unsubsidized Stafford Loan funding. The lender should automatically notify Maryville College of the denial thru the ELM Loan Processing System and the MC Financial Aid office will determine the student’s eligibility and amount of Unsubsidized Stafford for which the student qualifies. Freshman and sophomores may qualify for up to an additional $4000, juniors and seniors up to an additional $5000.