For: All parents of dependent undergraduates regardless of income. Qualification is based solely on good credit. You must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application. There are no debt-to-income ratio guidelines or employment verification requirements.
Loan Amounts: Parents may borrow up to the total education cost for the year, minus any other financial aid that the student is receiving. The total education cost can include tuition and fees, room and board, books and supplies, transportation, and living allowance.
Federal Parent PLUS loans disbursed on or after July 1, 2016 through June 30, 2017 have a fixed interest rate at 6.31%, with interest beginning to accrue upon disbursement until it is repaid in full.
Federal Parent PLUS loans disbursed on or after July 1, 2017 through June 30, 2018 have a fixed interest rate at 7.00%, with interest beginning to accrue upon disbursement until it is paid in full.
Federal Direct Parent PLUS loans first disbursed on or after October 1, 2016 and before October 1, 2017 have a 4.276% loan fee.
Federal Direct Parent Plus loans first disbursed on or after October 1, 2017 and before October 1, 2018 have a 4.264% loan fee.
Loan fees are retained by the federal government to reduce the cost of supporting these low interest loans.
The Department of Education is responsible for all Parent PLUS loan credit decisions. Parent PLUS loan borrowers are required to pass a simplified credit check, meaning that the U.S. Department of Education is not looking for a certain credit score or for an extensive credit history, but simply the absence of an adverse credit history. Students can view the status of their parents’ application by logging in to www.studentloans.gov or by calling Federal Direct Loans at 1-800-557-7394. Effective March 29th, 2015 credit decisions are held for 180 days.
The following will cause a Parent PLUS Loan to be denied:
Parents will receive an immediate approval or denial of their application upon electronic completion as well as the loan reference number, which is needed if the parent wishes to pursue an endorser. The Walden University Office of Financial Aid will be notified electronically of the credit decision only if the application was completed electronically. Applications are not approved or denied based on the dollar amount requested; therefore, parents should not complete additional applications once a denial is rendered by the Department of Education. Once the loan application is denied, the parent must either find an endorser or appeal the credit decision by documenting extenuating circumstances.
The Office of Financial Aid has no control over or influence on the credit decision rendered by the Department of Education. Any and all correspondence regarding credit appeals and endorsers must be sent to the Department of Education.
Approval for the Parent PLUS loan is loan specific. It is possible to be approved for one loan and denied at a later date for a new loan. Denied parents still have two options to obtain the Parent PLUS Loan:
Steps to be taken by the endorser (these must be completed electronically; paper addenda will not be accepted):
Usually done in three equal amounts at the beginning of each semester/quarter and sent directly to the university. A federal loan fee may be deducted from the proceeds.
Federal Direct Parent PLUS loan repayment normally begins within 60 calendar days after the loan has been fully disbursed. In certain circumstances, parents may elect to repay the loan on a graduated repayment schedule, making interest-only payments (the minimum is based on the term of the loan and must be at least $50 per month) for a portion of the repayment term.
Do you have questions about financial aid? If you haven’t yet applied to Walden, please contact an enrollment advisor at 1-866-492-5336 in the United States. If you are a current student, please contact a financial aid advisor at email@example.com or call 1-800-WALDENU (1-800-925-3368).