The PLUS loan is available for the parents (natural or adoptive parent, any step-parent whose information is on the FAFSA) of dependent undergraduate students only. FAFSA is required, the student must be enrolled in at least 6 hours. The Federal Direct PLUS Loan has a fixed interest rate of 7.9%. The maximum amount of the PLUS loan is TCU's cost of attendance minus other financial aid. Interest accrues immediately; but repayment can be deferred until the student stops attending. The parent borrower must request this repayment option, called an "in-school forbearance."
Parent PLUS Loan process
- Request a PLUS Loan: Go to www.studentloans.gov and click on the green Sign In button. You will need your federal PIN number (this is the number you used to e-sign the FAFSA) to log in. Once you're in, click on Request a PLUS Loan on the left side menu. Follow the on-screen instructions until you see the word "Congratulations." This means you have passed the credit check for a Parent PLUS Loan. TCU will receive notification of your credit decision within 2 business days.
- Within 2 business days, TCU will notify your student via email that it is time to complete the Master Promissory Note (MPN). On the www.studentloans.gov website (while you are logged in), click on Complete MPN on the left menu. Then choose the loan type Parent PLUS, and follow the on-screen instructions from there. TCU will receive electronic confirmation that you have passed the credit check and completed the MPN process.
PLUS Loan Frequently Asked Questions
- My student was offered a PLUS Loan as part of the financial aid award package from TCU. What does that mean?
An offered PLUS Loan amount indicates the maximum amount that a parent might be able to borrow through the Federal Parent Loan (PLUS) program. - I am not sure my credit is good enough to qualify for a PLUS Loan. Can I find out somehow?
Federal regulations define credit eligibility for a PLUS Loan as being a parent borrower who has no "adverse credit." This term normally means that the applicant has no debt repayment account that is 90 days or more delinquent, has not had any debt discharged in bankruptcy in the last 5 years, and has not been in default on any debt (no foreclosure, tax lien, repossession, wage garnishment, or write-off) in the last 5 years. - What if my credit isn't good enough and I am denied for a PLUS Loan?
The US Department of Education offers an option to add an endorser (like a cosigner) to your PLUS Loan if you aren't approved on your own credit. An endorser is a credit-worthy person who will sign the loan app with the parent borrower and take on equal liability for the PLUS Loan debt. If a parent is denied a PLUS loan, the student can be eligible for an additional $4000 Stafford Unsubsidized Stafford Loan. This will be awarded to your student automatically if TCU is notified of a PLUS denial for you. - Who can be my Parent PLUS Loan endorser?
Any adult who meets credit requirements can endorse a PLUS Loan if the parent borrower does not meet the credit requirements on his/her own. (Spouses are generally not good endorsers because a spouse often has a credit history very similar to the borrower's.) - I don't think the Federal Parent PLUS Loan is the right option for our family. What are our other choices?
Students can apply for private education loans, which are credit-based and have variable interest rates. Most undergraduate students will not have sufficient credit to be approved alone (lenders require a minimum of three years positive credit history and three open credit accounts), so he/she will need a credit-worthy cosigner. - What is the Federal PLUS Loan application like? Is there any special information I should know before I apply?
You WILL need your federal PIN number to complete the electronic signature! This is the same number a parent uses to provide a signature on the FAFSA. (Your student will also need his/her federal PIN for loan processing, so keep these numbers where you can find them!) The process can be completed entirely online. Funds for all PLUS loans will be delivered to TCU electronically and posted to your student's TCU account.
TCU Loan Team Contact:
817-257-7858
