Federal Direct Loans

Federal Direct PLUS Loan

PLUS loans are federal loans that graduate students and parents of dependent undergraduate students attending at least half-time can use to help pay education expenses. The interest rate is a fixed 7.9%. There is a 4.204% origination fee beginning with new loans that have a first disbursement on or after July 1, 2013, which is deducted from each disbursement of a PLUS Loan.

Loan funds are disbursed directly to Southern New Hampshire University in equal amounts over each term of enrollment for the academic year. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid. PLUS loans must be processed according to federal regulations, which stipulate that a loan cannot be processed after the end of the loan period. Thus, you cannot use a federal PLUS loan to pay a back balance.

Federal Direct Parent PLUS Loan:

  • Borrower can be a biological or adoptive parent (or in some cases, the step-parent) and a U.S. citizen or permanent resident.
  • Borrower must not have an adverse credit history.  A credit check will be required.
  • Repayment begins 60 days after the loan is fully disbursed and extends up to 10 years.
  • SNHU requires that a valid FAFSA be filed before a PLUS loan is originated.

Federal Direct Graduate PLUS Loan

Ready to Apply?  Parents follow these steps:

  • Go to StudentLoans.gov,
  • Sign in (or create a new account) to “Manage My Direct Loan”
  • Choose Start PLUS Application Process
  • Select “Parent PLUS” as the Loan type
  • Follow the instructions to complete the PLUS loan application

There are a number of advantages in considering the Parent PLUS loan over a private educational loan. As a family you should decide which loan option best suits your needs. There is no obligation to accept this loan. If your family decides to proceed with a Parent PLUS loan, the parent must complete a credit check, select a lender and complete a PLUS Master Promissory Note on or after June 1.