Financial Aid
Federal Direct PLUS Loan

Beginning with the 2009-2010 academic year, St. Lawrence University participates in the William D. Ford Federal Direct Loan program for all Federal educational loans, including the Federal Parent PLUS Loan.  A Parent PLUS Loan is a Federal loan that is an option for parents of undergraduate students who are attending school at least half-time. The PLUS loan is in the parent's name.  A credit check will be performed on all Federal PLUS Loan borrowers. The interest rate on a Federal PLUS loan is usually better than many of the alternative student loans and currently has a fixed interest rate of 7.9 percent set by the Federal government.

More information:

  • The annual loan amount maximum for a Federal PLUS Loan is determined by the cost of attendance less all accepted financial aid.
  • A PLUS Loan is not need-based.
  • A credit review must be performed to determine eligibility.  
  • There is a 4% Origination and Insurance Fee, plus an automatic 1.5 percent rebate at the time of disbursement.  The net 2.5 percent fee will be deducted from the total loan amount to be disbursed.
  • Standard repayment begins 60 days after the loan is fully disbursed with a 10 year repayment term.

Deferment Option!  For Federal PLUS loans made to parents that are disbursed on or after July 1, 2008, Federal regulation now provides the borrower the option of beginning repayment on their Federal PLUS Loan either 60 days after the loan is fully disbursed OR not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis. This deferment is not automatic. Borrowers interested in deferment on their Federal Direct Parent PLUS Loan should contact the Direct Loan Servicing Center at (800)848-0979 to request a deferment based on the dependent student’s enrollment status.

Application Process:
For parents who wish to apply for a Federal Direct Parent PLUS Loan, the application procedure is a simple two-step process as outlined below. Parent(s) must complete both an application and Master Promissory Note (MPN).

Step 1. Complete the Parent PLUS Loan application:  The first step in obtaining a Federal Direct Parent PLUS loan is to complete and return the Federal Direct Parent PLUS Loan application to St. Lawrence.  Download and complete the application below and return it to the Financial Aid Office.  Please be sure to complete the form neatly and accurately and answer all questions.  Incomplete and/or illegible applications may slow the application process.

Federal Direct Parent PLUS Loan Application

Step 2. Complete a Master Promissory Note: New borrowers of a Federal Direct Parent PLUS Loan will also need to complete a Master Promissory Note (MPN).  Borrowers will need to go to dlenote.ed.gov and select “Complete New MPN for Parent PLUS Loans”, and follow the nine step application process. 

Remember, by signing the MPN you are agreeing to pay back any Federal Direct PLUS Loans that you receive to pay for your child's education.

The U.S. Department of Education offers the following websites to assist in the planning for repayment of Federal educational loans:

Loan Repayment Information for Federal loans
Loan Repayment calculator for Federal loans

Additionally, the following websites my offer added guidance when determining options for financing your student’s education:
Loan Discount Analyzer - Allows you to compare many different types of loan discounts, expressing them as the equivalent no-fee interest rate discount starting when the loan enters repayment.
Parent Loan Advisor - Provides you with an estimate of the amount of educational debt you can reasonably afford for your children's education, given your current salary and other debt obligations.
How Much To Borrow - This calculator helps you decide how much of the net college costs (e.g., the family contribution) should be paid from income and assets (or a short-term payment plan), and how much you should borrow through education loans to help pay the bill.

PLUS vs. Stafford Loan Comparison Chart – Allows you to compare the tradeoffs of borrowing money through an unsubsidized Stafford Loan or a PLUS Loan.