The Federal Direct Parent Loan for Undergraduate Students (PLUS) is a non-need based loan for parents of dependent students. Loan eligibility amount is limited by the institutional budget minus all other financial aid.
Effective July 1, 2022, Federal Direct PLUS loans for the 2022-2023 academic year will have a 7.54% interest rate fixed for the life of the loan with a 4.228% up-front loan fee deducted from each disbursement. Interest rates on future year Federal Direct PLUS loans will be indexed to the 10-year U.S. Treasury Note rate.
Repayment begins 60 days after the loan is fully disbursed (unless approved for a deferment) and cannot be transferred into the student’s name. The parent borrower must repay the loan. Students are required to meet Satisfactory Academic Progress and maintain half-time enrollment.
Obtaining a PLUS Loan
After completing the FAFSA, the student will be notified when their award notification is available in e-Services. The parent can then complete the PLUS Electronic Master Promissory Note and online Direct PLUS application which are available at studentaid.gov. You will need to use the FSA ID and social security number of the parent applying for the loan to sign in. A credit check will be conducted prior to approval of the loan. If the parent’s credit is denied the student will be eligible for additional unsubsidized direct loan. An email will be sent to the student’s NTC email address notifying them of a revised award notification available through their e-Services account.
Once a parent has completed a Master Promissory Note for that individual student, all subsequent PLUS loans will only require the online Direct PLUS application.
Receiving PLUS Funds
PLUS loan funds are disbursed approximately the fourth week of each semester and credited to the student’s account. Any remaining balance will be issued according to the parent’s selection on the online Direct PLUS application (remaining funds can go to the student or the parent).
There is no grace period for a Direct PLUS Loan. The repayment period begins 60 days after the school makes the last disbursement on the loan. You (the parent) may contact the loan servicer to request a deferment (postponement of payment) while you or the student (your son/daughter) are enrolled at least half-time and for an additional 6 months after the student ceases to be enrolled at least half-time.
If the loan is deferred, interest will accrue on the loan during the deferment period. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due. You can choose to repay your PLUS Loan using the standard, extended, or graduated repayment plan.
To ensure the integrity and the best interests of our students NTC employees are subject to the Student Loan Code of Conduct.