There are two types of PLUS Loans available: a Parent PLUS, for parents of undergraduate students, and a Graduate PLUS, for Graduate Students.
It is recommended that all Stafford Loan funding should be exhausted prior to a Parent PLUS being borrowed. Graduate students must exhaust all Stafford Loan eligibility prior to borrowing a Grad PLUS.
Parent PLUS
A Federal Parent PLUS is available to an eligible parent or legal guardian of a dependent undergraduate student. A PLUS borrower must be credit-worthy (as determined by the lender). Your parent(s) must submit a completed PLUS Master Promissory Note (MPN) to the guarantor/lender. After reviewing credit, the guarantor/lender will forward a certification request to Wagner. After the college certifies the application, it must be returned to the guarantor/lender for further evaluation. Because your financial need does not have to be evaluated, you do not need to file a FAFSA to receive a PLUS.
A PLUS borrower is responsible for paying the interest that accrues on the loan (which begins when the first disbursement is made) until the loan is paid in full. Normally, repayment of the principal begins within 60 days of the second disbursement. Certain lenders will allow a borrower to defer payments while the student is in school.
In most cases, the lender will send the loan funds to your school in at least two installments (no installment can be greater than half the loan amount). Origination/ default fees may be deducted from the gross amount of the loan prior to disbursement. The funds will first be used to pay for your tuition and fees, room and board, and other school charges. Any remaining loan money must be used for your educational expenses.
In the event that a parent PLUS is denied by a lender, the student may be eligible to borrow additional resources under the Unsubsidized Stafford Loan Program. Another option would be for the parent to obtain a credit-worthy endorser for the PLUS and to reapply to the lender.
Wagner will typically certify a PLUS within 2-4 weeks of receiving the certification request. Upon certifying the loan, a temporary credit will be placed on the student's account until such time as the funds are disbursed by the lender.
NOTE: Your school can refuse to certify your parents' loan application, or can certify a loan for an amount less than they would otherwise be eligible for, if the school documents the reason for its action and explains the reason to your parents in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.
*Effective July, 1, 2006, the PLUS interest rate will be fixed at 8.5%.
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PLUS for Graduate Students
Beginning with the 2006-2007 academic year, graduate students will be eligible to borrow a PLUS loan. The graduate PLUS, will be borrowed in the student's name and based upon the student's credit-rating. In order to borrow a graduate PLUS, a student must exhaust their subsidized and unsubsidized Stafford Loan eligibilty prior to borrowing a PLUS.
If a graduate student is denied a PLUS, additional unsubsidized Stafford Loan eligibility does not apply.
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