Federal Parent (PLUS) Loan
For parent borrowers, the Federal Stafford Loan Program offers the Federal PLUS Loan. This enables a parent with good credit history to borrow funds to pay the education expenses of each student who is a dependent undergraduate student enrolled in at least six credit hours for each semester of the loan period.
The yearly limit on a PLUS Loan is equal to your student’s cost of attendance less any other financial aid your student is eligible. For example, if the cost of attendance is $10,000 and your student is eligible for $7,000 in other financial aid, you could borrow up to, but no more than, $3,000.
The PLUS loan has a 4.204% origination fee. Effective December 1, 2013, the origination fee will be 4.288%.
The Hawkeye Community College Financial Aid office manages the processing of this loan and the Department of Education's Loan Servicing Center handles the servicing and repayment.
Spring 2014 loans will be disbursed on January 29, 2014.
Loan funds are applied first to any outstanding balances on your student’s student account. Any remaining balance is then credited, according to the Hawkeye refund schedule, to the designee on the application form in one disbursement per semester.
If the remaining balance is refunded to the parent borrower, the student will no longer be eligible for the direct deposit option for any financial aid.
Parents may choose to cancel all or part of the loan up to 14 days after the disbursement of funds.
Repayment begins 60 days after the loan is fully disbursed, unless a deferment condition applies.
Parents may request an in-school deferment for PLUS Loans taken out for their dependent child. Keep in mind that this change is only for PLUS loans that are first disbursed on or after July 1, 2008.
Federal Stafford Loans must be repaid.
pass a credit check. A credit check is only good for 90 days so if requesting a loan in separate semester, we will need an additional application for an updated credit check
If you do not pass the credit check, you might still be able to receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to be the endorser on the loan, promising to repay it if you should fail to do so.
In the event that the parent can't resolve the credit issue nor secure a co-signer, the student becomes eligible for additional Federal Unsubsidized Stafford loan limits up to $4,000.
your student meets federal program eligibility requirements
To apply, complete the appropriate year Parent PLUS Loan Data form.
Once we have received your Parent PLUS Loan Data form, the parent's credit check will be performed and notification of the results will be sent to the parent.
Once the loan has been processed, and the required credit checks have been approved by the Department of Education, we will email you additional information if necessary to finalize the loan.
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