Learn more about the different loan options available to parents.
Parent loans are a common payment option when current income and savings are not enough. There are many educational loan products available to help finance education. Parents may borrow up to the cost of education minus financial aid received. We recommend applying for enough funds for the full academic year instead of semester by semester.
The Office of Student Financial Services encourages all borrowers to do their own research and select the lender that is best for them. There are many other options available to students and their families.
The Federal Direct Parent PLUS Loan is a federal loan program through which parents who pass a basic credit check may borrow up to the cost of attendance minus existing financil aid. The PLUS Loan program enables parents of dependent undergraduate students to borrow from, and repay loans directly to the U.S. Department of Education through its servicing centers. PLUS Loans offer a fixed interest rate, which for 2018-2019 is 7.60%. There is a 4.248% origination fee automatically deducted from the loan amount prior to disbursement. This fee changes every Oct 1st. Repayment begins 60 days after the loan is fully disbursed and a deferment can be requested as part of the online application process. Parents can choose to defer payments on a PLUS loan until 6 months after the date the student ceases to be enrolled at least half time.
If a parent is denied a Federal PLUS loan due to credit reasons, the parent may appeal the denial or have a credit worthy person cosign/endorse the loan. If a parent is approved by appeal or with an endorser, he/she is required to complete on-line credit counseling through StudentLoans.gov.
If the parent is denied and does not wish to appeal or seek an endorser, the dependent student may receive additional unsubsidized loan funding. The maximum eligibility is $4,000 for freshman/sophomore class levels, and $5,000 for junior/senior class levels.
The 2019-2020 PLUS application should become available in late April 2019 and we recommend applying for the annual amount that is needed. For more details on the PLUS Loan and to apply, please visit www.studentloans.gov.
For a list of additional private parent eduational loan options, please visit finaid.org. or studentaid.ed.gov. Emmanuel College also has a dedicated ELM Select site where you can research private loan lending options to identify the lender whose terms best meet your needs. Emmanuel College does not endorse any individual lender.