While federal loan programs provide the best borrowing options, the amount students may borrow through those programs may not meet the full amount of their unmet costs. In such cases, students and families look to alternative lending options such as a Parent PLUS loan and/or an alternative loan in the student's name.
The Federal PLUS Loan is offered to parents of dependent undergraduate students. A credit check will be performed by the U.S. Department of Education at the time of application to determine eligibility for the PLUS Loan. Repayment begins within 60 days of final disbursement of the loan. Numerous repayment options (deferment or forbearance) are available.
For each academic year, you may borrow up to - but not more than - a school's cost of attendance, minus the amount of other financial assistance that the student receives. It is important not to borrow more than you can afford to repay, even if you can afford to borrow more. Selecting "Max Amount" will not default to the total balance owed, but to the difference between offered aid and cost of attendance. Saint Louis University is only able to process PLUS loans in dollar amounts, if cents are listed on the application, the loan will be rounded down to the nearest dollar. Please contact your admission or financial aid counselor for assistance in determining the right amount for your situation.
When asked for your "Requested Loan Period Start Date" make sure and indicate the month and year that you begin your studies (e.g. August 2012). Your "Requested Loan Period End Date" will be the month you complete your studies for the term or choose to end your PLUS term (e.g. May 2013).
If the Federal PLUS loan is denied, the dependent student will have eligibility for an unsubsidized Direct Loan (Freshman/Sophomore: $4,000; Junior/Senior: $5,000). Upon confirmation of the denial from the lender, the Office of Student Financial Services will award the unsubsidized loan eligibility for the student to accept through mySLU.
Alternative loans from lenders are available to students. These loans are not federally funded. The interest rates on these loans often are variable, are not capped and are tied to the prime rate or the LIBOR index. The Office of Student Financial Services encourages students to take advantage of their federal loan programs before exploring alternative loan options.
Detailed information regarding the federal loan program for the 2013-2014 academic year is illustrated below. Loan information effective July 1, 2013.
|PARENT PLUS LOAN||PRIVATE/ALTERNATIVE|
|Who is the borrower?||Parent||Student|
|What is the interest rate?||Fixed 6.41%||
Tied into the prime rate or LIBOR index.
|Are there fees?||Yes (4.288% of the amount borrowed)||Varies depending on the lender.|
|When is the loan repaid?||60 days after the final disbursement of the loan. Options are available to defer payments for up to four years while the student is enrolled.||Varies depending on the lender. Typical repayment is six months after graduation or enrollment below half-time status.|
|How much can I borrow?||Up to the cost of attendance minus other financial aid.||Up to the cost of attendance minus other financial aid.|
|Do I need a co-signer?||No||Yes, in most cases.|
|Is the loan based on credit?||
*If parent is denied, the student is awarded a $4,000 (freshman or sophomore) or $5,000 (junior or senior) unsubsidized Direct Loan. See previous loan chart.
What is the next step?
|Reqeust PLUS loan and complete Master Promissory Note and entrance counseling at: www.student loans.gov||Visit finaid.slu.edu/loans for more information.|
For a parent borrowing from the Federal Direct Parent PLUS Loan program, the following step must be completed:
Apply for a Parent PLUS loan and complete a Federal Direct Parent PLUS Master Promissory Note (MPN) by clicking here. The MPN is good for 10 years. If you have previously borrowed from the Federal Direct Loan Program, you may not need to complete a new MPN. Please apply for your Parent PLUS loan no sooner than 90 days before the student's start date. The U.S. Department of Education will complete a credit check which will be valid for 90 days.