Office of Financial Aid and Scholarships (OFAS) Telephone # 765-285-5600
Ball State University, Lucina Hall, Room 245 Toll free # 800-227-4017
Muncie, Indiana 47306-0880 FAX 765-285-4247
http://www.bsu.edu/finaid E-mail [email protected]du
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Federal Direct Parent Loan
for Undergraduate Students (PLUS)
What is the PLUS loan?
The PLUS loan enables you to borrow to pay the educational
expenses of each child who is a dependent undergraduate
student enrolled at least half time. It is available through the
Federal Direct Loan Program.
What is the interest rate?
The interest rate is fixed at 5.30%.
Is there a charge for a PLUS loan?
The Federal Direct Loan Program charges a 4.236% loan fee,
which is deducted from the gross amount of the loan.
What if I don’t pass the credit check?
If you don’t pass the credit check, you will be notified by the
Direct Loan Center that you have the following options:
Appeal: If you believe the denial was an error, you may work
with the Direct Loan Center to reverse the credit decision.
Endorsement: You may have someone endorse the loan.
This person would be responsible to repay the loan if you are
unable to make the payments.
Note: If a parent obtains an endorser or an approved appeal,
the parent must complete a new Master Promissory Note and
PLUS Credit Counseling at
www.studentaid.gov
Federal Direct Unsubsidized Loan (in place of a PLUS denied):
The student can request additional loan funds if the PLUS
loan is denied. The additional Unsubsidized loan maximum is
$4,000 for freshmen/sophomores and $5,000 for
juniors/seniors. This loan request form may be obtained at
www.bsu.edu/finaid
or from the Office of Financial Aid &
Scholarships (OFAS). Only one parent must apply for a PLUS
and be denied based on adverse credit. However, if both
parents apply independently and one is approved, the
student is not eligible for the increased loan amount.
If you opt for an appeal or endorsement, you will be required
to complete online credit counseling at
www.studentaid.gov
Who receives the PLUS loan funds?
Your PLUS loan funds go directly to Ball State University.
One-half of the net loan proceeds will be applied to the
student’s first semester charges, while the second half will be
applied to the second semester charges. For one semester
only PLUS loans, there will be one disbursement. If there are
excess funds remaining after each disbursement, a refund will
be issued to the student or parent (depending upon the
refund option you select).
When do I begin repaying a PLUS loan?
Repayment of principal and interest begins 60 days after the
final disbursement for the academic year. You may contact
your loan servicer to request a deferment while you or your
child are enrolled at least half-time.
Steps to apply for the PLUS loan
1. Go to
www.studentaid.gov.
2. Sign in with your PARENT FSA ID.
3. Click “Apply for a PLUS Loan” under the “APPLY
FOR AID” menu
4. Scroll to the bottom, select “Complete PLUS
Request for Parents”.
5. Complete the application.
You will get a confirmation e-mail stating if your
loan was approved or denied immediately after
your submit your loan request.
6. The Direct Loan Center will notify Ball State of the
credit decision.
7. The parent borrower will need to complete a
Master Promissory Note (MPN) at
www.studentaid.gov.
For more information
Loan and repayment calculators:
www.finaid.org/finaid/calculators
Credit check: Student Loan Support Center
1-800-557-7394
