Office of University Financial Aid
College of Arts & Sciences
Federal PLUS (Parent Loan)
How to Apply Online
(Parents without internet access should contact the financial aid office at 651.638.6241)
- Choose a lender: If you are a first-time PLUS borrower, you need to select a lender for your PLUS loan. Repeat PLUS borrowers will be kept with their prior lenders, unless they request a change. (Prior AFG, Bremer Bank, SLXpress, and TCF borrowers must choose a new lender for 2008-09. See the discontinued lenders note at the bottom of this page.) If you decide to change PLUS lenders, you must complete a new Master Promissory Note and notify the financial aid office of your decision (steps 2 and 3 below). Borrowers are free to select any lender for their educational loans. To assist borrowers in selecting a lender, the financial aid office annually compiles a list of preferred lenders (see Bethel's criteria for preferred lenders). We encourage borrowers to visit the preferred lenders' websites listed below to learn more about the specific benefits offered by each lender.
- Authorize loan amount: PLUS borrowers may use either the student's Financial Aid Loan Response Form (received with their Financial Aid Award Letter) or a Supplemental Loan Response Form to tell the financial aid office how much they plan to borrow in a PLUS loan.
- Complete a promissory note (new borrowers only): Parents complete one Master Promissory Note for each of their dependent students. Subsequent PLUS loans from the same lender for the same dependent student do not require a new promissory note. To access the online application/promissory note for one of the preferred lenders listed below, choose the "TO APPLY" link for that lender. Be sure to select the same lender online as you did on the Loan Response Form.
Features
- Repayment begins 60 days after loan is fully disbursed (about April 1 for a full-year loan).
- Borrower is the parent of a dependent student.
- Parents may borrow up to the cost of attendance minus other aid.
- The minimum payment is $50/month.
- Student must be enrolled at least half-time.
Interest Rate
- PLUS (Parent) loans have a 8.5 percent fixed interest rate.
What happens if the PLUS loan is denied?
Dependent students whose parents' PLUS loan is denied become eligible for additional Unsubsidized Federal Stafford Loan. Freshmen and sophomores may borrow up to $4,000 per year; juniors and seniors may borrow up to $5,000 per year. Contact the financial aid office for additional information on applying for additional Unsubsidized Stafford Loan.
Processing Deadline
July 1 for full-year and fall semester loans; November 15 for spring semester loans; May 1 for summer semester loans.
Loan Fees
- All PLUS loans are charged fees of 4.0 percent for 2008-2009 (origination fee of 3.0 percent plus a federal default fee of 1.0 percent for a total fee of 4.0 percent). Some guarantors pay the federal default fee on behalf of the borrower.
- Fees reduce the amount of loan borrowers receive. For example, a $5,000 loan with a 4.0 percent fee ($200) will result in a net loan of $4,800 disbursed to the borrower ($5,000 minus $200 equals $4,800).
Choosing A Lender
To assist students in selecting a lender, the financial aid office conducts an annual evaluation of potential lenders. Students are free to select any lender for their educational loans. However, after a thorough review of lender data, we encourage borrowers to strongly consider one of the following preferred lenders to ensure that they receive the highest level of customer service, avoid delays in processing loans, and have access to the best borrower benefits available to Bethel students.
Summary of Borrower Benefits*
All of Bethel's preferred lenders offer financial benefits to their borrowers. Please visit the lenders' websites listed below to learn more about the specific benefits they offer (e.g., rebates of principal, reduced interest rates for graduation and/or automatic payments, forbearance options that allow parents to make no payment or interest-only payments while their student is enrolled).
Current Preferred PLUS Lenders and Benefits
PLUS Lender |
Initial Fees Paid by Parent* |
Citibank
|
1% default fee |
U.S. Bank
|
1% default fee |
Wachovia Education Finance
|
1% default fee |
Wells Fargo
|
1% default fee |
* These benefits are for loans processed for the 2008-2009 academic year and are subject to change without notice. The information above is correct as of February 1, 2008. Visit the lenders' websites for current information.
Note: Previous borrowers of discontinued lenders
Effective April 1, 2008, Academic Funding Group (AFG), Bremer Bank, EFSI, Student Loan Xpress (SLXpress), and TCF Bank (TCF) are no longer participating in the Federal Family Education Loan Program (FFELP). Therefore, you will not be able to borrow a Stafford, Parent PLUS, or Grad PLUS loan from these lenders for the 2008-2009 year. These lenders also terminated their private educational loan products. Prior borrowers of Stafford and PLUS loans from these lenders will need to select a new lender and complete a new Master Promissory Note for 2008-2009. Prior borrowers of private loans from these lenders will need to select a new lender for the private loan. If you have any questions, please contact the financial aid office by email at finaid@bethel.edu or by telephone at 651.638.6241.
May 28, 2008 update: Total Higher Education (T.H.E.) temporarily suspended their participation in the FFELP from April 1, 2008 through May 27, 2008. As a result of this suspension, T.H.E. forfeited its "preferred lender" status with Bethel University for the 2008-2009 academic year. For more information regarding T.H.E.'s educational loan products, visit www.theloanprogram.org .
To see a current list of lenders that are no longer participating in the federal loan programs, visit http://www.finaid.org/loans/lenderlayoffs.phtml and scroll down to the "Loan Program Suspensions" table.