Federal Direct PLUS Loan
Federal Direct PLUS Loan Process
To apply for a Federal Direct PLUS Loan, follow these steps:
- Submit the student Free Application for Federal Student Aid (FAFSA) form for the current year and complete student's financial aid file at SMC.
- Student must meet SMC’s Satisfactory Academic Progress Policy.
- Complete the “Master Promissory Note”, "Entrance Counseling", and the “Request a Direct PLUS Loan” on studentloans.gov.
PLUS Loans are borrowed by a parent to pay for the educational costs of his/her dependent student. There is no federal interest subsidy for this loan, a credit check is conducted by the lender (U.S. Department of Education), and repayment of interest and principal must begin within 60 days of the disbursement of the loan. For the 2015-2016 year, there is a fixed interest rate on PLUS loans of 6.84 percent. A FAFSA for the student must be on file prior to the awarding of a PLUS loan and the student must be enrolled at least half-time. The parent must also complete a Master Promissory Note (MPN) agreeing to repay the loan.