College of Arts & Sciences

Direct PLUS (Parent Loan)

Beginning in fall 2009, Bethel University will participate in the William D. Ford Federal Direct Loan Program. This means that parents will now get PLUS Loans directly through the Department of Education, rather than through private lenders participating in the Federal Family Education Loan Program (FFELP). All Parents borrowing a PLUS loan for 2009-2010 must complete a new Master Promissory Note (MPN), for each dependent student by following the instructions below.

How to Apply Online

(Parents without internet access should contact the financial aid office at 651.638.6241)

1. Complete a Master Promissory Note (MPN) - ALL PLUS borrowers: Complete one Master Promissory Note for each of your dependent students at the Federal Student Aid Direct Loan website. For questions about PLUS Master Promissory Note or approval status, contact the Loan Origination Center at 800.557.7394.
   

   

   
   
   All parent borrowers must complete a new Direct PLUS Master Promissory Note even if you have previously borrowed a PLUS Loan at Bethel.
   
   

2. Authorize loan amount: Use the Direct PLUS Loan Response Form received with your student's Financial Aid Award Letter to tell the financial aid office how much you plan to borrow in a Direct PLUS Loan or a generic PLUS Loan Response Form is available on our website. Your PLUS loan will not be processed until you submit the loan amount request to the financial aid office.
   
   

Interest Rate

Direct PLUS (Parent) loans have a 7.9% fixed interest rate.

Loan Fees

The fee for a Direct PLUS Loan is 4%; however, a 1.5% interest rate rebate reduces this fee to a net of 2.5%. Once you begin repayment you must make 12 on-time monthly payments to retain this benefit.

Features

• Parents may borrow up to the cost of attendance minus other aid.
• The minimum payment is $50/month.

Repayment

Repayment begins 60 days after the full amount borrowed for a school year has been disbursed (around April 1 for a full-year loan). However, parents may request that repayment be delayed until 6 months after the student graduates or is no longer enrolled at least half-time.

To request this deferment, parents must contact the Direct Loan Servicing Center at 1.800.848.0979. Information regarding repayment may be found online on the Direct Loan Servicing website at www.dl.ed.gov and all repayment questions should be directed to Borrower Services at the Direct Loan Servicing Center at 1.800.848.0979.

What happens if the Direct PLUS loan is denied?

• Parents who have adverse credit history and expect to be denied, may request a Direct PLUS Loan credit check by returning a completed Credit Check Authorization (PDF format) to Bethel's Office of Financial Aid.  
• Dependent students whose parents' PLUS Loan is denied become eligible for additional Direct Unsubsidized Loan funds. Freshmen and sophomores may borrow up to $4,000 per year; juniors and seniors may borrow up to $5,000 per year. Students must notify the financial aid office of their intent to borrow the additional Direct Unsubsidized Loan through completion of a Supplemental Loan Response Form.