Federal Parent (PLUS) Loan
For parent borrowers, the Federal Stafford Loan Program offers the Federal PLUS Loan. This enables a parent with good credit history to borrow funds to pay the education expenses of each student who is a dependent undergraduate student enrolled in at least six credit hours for each semester of the loan period.
The yearly limit on a PLUS Loan is equal to your student’s cost of attendance less any other financial aid your student is eligible. For example, if the cost of attendance is $10,000 and your student is eligible for $7,000 in other financial aid, you could borrow up to, but no more than, $3,000.
The Hawkeye Community College Financial Aid office manages the processing of this loan and the Department of Education's Loan Servicing Center handles the servicing and repayment.
All parent PLUS loan proceeds are released in one disbursement per semester. If you are requesting a one semester only loan, the loan will be released in two disbursements during the semester.
The Parent PLUS Master Promissory Note, promising to repay the loan, must be completed by the parent prior to the loan funds disbursing.
Loan funds are credited to the student's student account. Any remaining balance is then credited, according to the Hawkeye refund schedule, to the designee on the application form.
If the remaining balance is refunded to the parent borrower, the student will no longer be eligible for the direct deposit option for any financial aid.
The parent may choose to cancel all or part of the loan up to 14 days after the disbursement of funds.
Origination Fee: 4.292%.
Federal Stafford Loans must be repaid. Repayment begins 60 days after the loan is fully disbursed, unless a deferment condition applies.
Parents may request an in-school deferment for PLUS loans taken out for their dependent child. It is the parent's responsibility to request the in-school deferment from the Loan Servicer. Also, keep in mind that this change is only for PLUS loans that are first disbursed on or after July 1, 2008.
pass a credit check.
Fall 2014, Spring 2015, Summer 2015: A credit check is only good for 90 days so if requesting a loan in separate semester, we will need an additional application for an updated credit check
Fall 2015, Spring 2016, Summer 2016: The credit check will be good for 180 days within the same academic year.
If you do not pass the credit check, you might still be able to receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to be the endorser on the loan, promising to repay it if you should fail to do so.
In the event that the parent can't resolve the credit issue nor secure a co-signer, the student becomes eligible for additional Federal Unsubsidized Stafford loan limits up to $4,000.
your student must be enrolled in and attending at least six credit hours for each semester of the loan period and meet federal program eligibility requirements.
Fall 2014, Spring 2015, Summer 2015
Complete the appropriate year Parent PLUS Loan Data form.
Once we have received your Parent PLUS Loan Data Application form, we will originate the loan.
Once the loan has been processed, and the required credit checks have been approved by the Department of Education, we will email you additional information if necessary to finalize the loan.
Fall 2015, Spring 2016, Summer 2016
During the application process you will be asked how much you wish to borrow. Please budget accordingly. If the amount requested exceeds the maximum cost of attendance, we will give the maximum allowed. You do not need to take the maximum allowed.
- To apply, visit www.studentloans.gov.
- "Sign In" using your (the parent) FSA ID.
- Request a Direct PLUS Loan.
- Follow the four steps in the application process.
Keep in mind there are time delays depending on timing of information completed and received.
The application process is done with the Department of Education and the Servicer handles the loans.
Hawkeye Community College is responsible for receiving the money sent and applying it toward the students' bill.
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