The federally-sponsored PLUS loan is a low-interest (currently 7.9%) loan for credit-worthy parents of dependent undergraduate students who are attending at least half-time in an eligible program.

Borrowers can be a parent, step-parent reported on the FAFSA, or legal guardian and must be a US citizen or eligible noncitizen. (Note: some lenders are PLUS Endorsers; any credit worthy borrower, including one other than the parent, can apply).

If a parent is denied a PLUS loan due to poor credit, the dependent student can apply for an additional Direct Unsubsidized Loan. 

Highlights of this loan program:

  • The borrower must complete a master promissory note (MPN) and a loan amount request form.
  • To cover the one-time 4.288% origination fee, the borrower must request an additional 4.288%. This fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
  • Loan funds are disbursed directly to JWU in three equal disbursements for the fall, winter and spring terms.
  • The maximum amount borrowed is not to exceed the cost of education less any other forms of financial aid.
  • The repayment term is 10 years. Repayment begins 60 days after the loan is fully disbursed.

Master Promissory Note
The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s).

To complete an MPN online, you will be required to use your Department of Education-issued personal identification number (PIN). If need be, you may request a PIN from the official PIN site. We explain the MPN in more detail and take you through the process of filing electronically.

In most cases, once your MPN has been accepted, you won't have to fill out a new one for any future loans on behalf of the same student. You'll receive a disclosure statement with specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.

Eligibility Requirements
PLUS loan borrowers cannot have an adverse credit history. In addition, parents and their dependent student must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

Your student must be a dependent enrolled at least half-time. For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the FAFSA is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent must be reported on the FAFSA.

Credit Check and Endorser Alternative
If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf you are obtaining a loan.

You may also be able to obtain a loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history. 

For information as to why your application was denied, and/or how to proceed with an appeal process, please contact the Federal Loan Origination Center/Applicant Services at 1-800-557-7394.

Loan Limits and Interest Rates
There are no set limits for Direct PLUS Loans, but you may not borrow more annually than the cost of your student’s education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. JWU will determine the actual amount you may borrow.

The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. Interest is charged during all periods, starting on the date of your loan's first disbursement.

Loan Disbursement
JWU will disburse your loan money by crediting it to your student’s school account to pay tuition, fees, room, board and other authorized charges.

If the loan disbursement amount exceeds your student’s school charges, the school will pay you the remaining balance of the disbursement directly by check. JWU will notify you in writing each time we disburse part of your loan money.