2011-2012 Loan Information
Federal Parent PLUS Loan
Priority deadline is
July 1
This parent loan is available to credit-worthy* parents of undergraduate students regardless of income. This loan program allows parents to borrow the difference between the cost of education and the financial assistance the student is scheduled to receive.
The interest rate is fixed at 7.9%. The Federal PLUS loan is subject to a 4% federal origination fee which is subtracted from the loan at the time of disbursement. Interest begins to accrue after the first disbursement, and payment of principal and interest begins 60 days after the final disbursement. For loans disbursed after July 1, 2008, parents can apply for an in-school deferment as long as their student is enrolled at least half-time.
When completing the loan application, the parent will have the option to either:
- "specify a loan amount" OR
- "borrow the maximum Direct PLUS Loan amount for which I am eligible, as determined by the school"
If the parent selects to borrow the maximum, please be advised the Office of Financial Aid will increase the loan amount beyond what is listed on the student’s award letter based on the student’s eligibility. If an adjustment to the amount is needed for any reason, the parent must send an email request to the Office of Financial Aid at finaid@callutheran.edu before the start of the term.
*To meet the federally defined credit worthiness requirements, an applicant cannot be 90 days or more delinquent on the repayment of any debt, the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write off of a Title IV debt during the last five years. If a parent fails the credit test, the student may borrow additional unsubsidized loan money up to $4,000 additional for freshman and sophomores, and up to $5,000 more for juniors and seniors.
