Parents who wish to borrow to pay for their dependent student's educational expenses may apply for a low-interest Direct PLUS Loan funded by the U.S. Department of Education.
About Direct PLUS Loans
- The interest rate is fixed at 7.6%.
- A loan fee of 4.248% will be charged.
- A credit check will be performed during the application process.
- The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received.
- The parent who completes the application and obtains the PLUS Loan (as the borrower) is legally responsible for repayment of the loan.
- Repayment begins within 60 days of the disbursement date.
- A student whose parent is denied a PLUS Loan may be eligible for an additional $4,000 unsubsidized Direct Loan.
- More information can be found here.
How to Get a Direct PLUS Loan
First, students should...
- Complete the FAFSA using SMC's code, 002317.
- Make sure all items in the financial aid column of their Student Dashboard are marked as "Complete".
Then, parents should...
Note: Students must meet and maintain SMC's Satisfactory Academy Progress policy to remain eligible for the PLUS loan.