Parent Loan Option
Federal Parent PLUS Loan
Parents of students at Monmouth College, who need additional help in financing their student’s education and who have filed the Free Application of Federal Student Aid (FAFSA), have the option to borrow through the Federal Parent PLUS Loan Program. A parent may borrow enough to cover educational costs, which is determined by the school. The maximum amount is the student’s cost of attendance minus any financial aid assistance the student receives.
Monmouth College processes all Parent PLUS loans directly with the Department of Education, Federal Direct Loan Program. The Parent PLUS loan requires successful completion of a credit history check. For the 2015-2016 academic year, the interest rate is fixed at 6.84% and the loan origination fee is 4.292%. The origination fee is deducted from the gross amount of the loan when it is disbursed to the student’s account.
Payment begins 60 days after the loan is fully disbursed. A deferment for the Parent PLUS Loan is available if the student remains enrolled at least half time, but interest continues to accrue.
- *First time Parent PLUS loan borrowers must complete the following two steps.
- **Continuing Parent PLUS loan borrowers ONLY need to complete step one.
- Complete a PLUS loan application at http://www.studentloans.gov by clicking the Log in button. Log in using your (the parent) recently created FSA
ID and password. If you don’t already have an FSA ID and password, you will be prompted
to create one. After you have successfully signed in, click on “Request a PLUS Loan”.
The loan type will be the Parent PLUS. Fill in all the requested parent data and submit
according to the instructions provided. You will need to specify the dollar amount
or choose the maximum amount you wish to borrow for the entire year. The credit decision is given immediately on the last page of the application. If
your credit is denied, it is NOT necessary to complete step 2.
- “Complete a Master Promissory Note” for a Parent PLUS loan while you are already signed in at http://www.studentloans.gov. Fill in all the requested parent data and submit. Monmouth College will be notified electronically, normally within 48 hours, when it is complete.
Once a parent has completed the steps above, Monmouth College’s Office of Financial Aid will process the loan electronically with the Federal Government. All disclosures and legal documents for the loan will be provided to the parent borrower directly from Department of Education, Direct Loans.
If you have questions, please contact the Office of Financial Aid at 309-457-2129 or by email at: firstname.lastname@example.org. Questions about the loan website can be directed to the loan origination customer service at 1-800-557-7394.