Receive Approval/Denial. The parent (borrower) will receive notification directly from the U.S. Department of Education on approval/denial. Individuals denied a
Federal Direct Parent PLUS Loan have the following options:
The parent may be approved with an endorser (co-signer) who agrees to repay the Federal Direct Parent PLUS Loan in the event the parent does not. The endorser may not be the student on whose behalf a parent obtains a Federal Direct Parent PLUS Loan.
The student may apply for an Unsubsidized Direct Loan based on the student's
eligibility (up to $5000 additional). The student will need to submit an
Additional Unsubsidized Loan Request Form along with proof of denial of the Federal Direct Parent PLUS Loan.
A parent may borrow the student's cost of attendance minus any financial aid (for example, grants, scholarships, work-study,
federal student loans) the student is already receiving for the school year.
Interest Rates and Fees
The interest rate is fixed at 7.21%. The loan fee is 4.288% for loans originated
between December 1, 2013 and September 30, 2014. For loans in which the first disbursement is
on or after October 1, 2014, the origination fee is 4.292%.
Payment may be deferred if the student is enrolled half-time. Contact Direct Loans to request deferment.
Disbursement of Funds
Loan funds are applied to student accounts
approximately ten days before the start of the semester.
If the borrower applies for a full academic
year loan, half of the amount applied for is disbursed at the
start of the fall semester and the other half at the start of
the spring semester.
Funds will first cover direct educational
expenses on the student's account.
Any excess funds are refunded to the parent
via paper check mailed to the permanent address on file.
Borrowers have the right to cancel all or a
portion of the loan with no penalty by submitting a loan
cancelation form within 30 days of disbursement. Visit
http://indstate.edu/finaid/lar-form.htm for the form.