For: All parents of dependent undergraduates regardless of income. Qualification is based solely on good credit. 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.
The interest rate for Parent PLUS loans disbursed on or after July 1, 2014 through June 30, 2015 is fixed at 7.21%, with interest beginning to accrue upon disbursement until it is repaid in full.
The interest rate for Parent PLUS loans disbursed on or after July 1, 2015 through June 30, 2016 is fixed at 6.84%, with interest beginning to accrue upon disbursement until it is paid in full.
Federal Direct Parent PLUS loans disbursed on or after October 1, 2014 through November 30, 2015 have a 4.292% origination fee.
Federal Direct Parent Plus loans first disbursed on or after October 1, 2015 and before October 1, 2016 have a 4.272% origination fee. The loan origination fee is 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 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 1-800-848-0979. 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. Credit decisions are held for 90 days. Once the loan application is denied, the parent must either find an endorser or appeal the credit decision.
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 origination fee may be deducted from the proceeds.
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 (minimum is based on term of the loan, but 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).