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Parent Loans
Federal Direct Parent PLUS (Parent Loan for Undergraduate Students)
Federal Direct Parent PLUS loans are federally guaranteed loans available to parents of undergraduates. There is no financial need requirement to receive these loans. You do not need to contact a lender; these loans are made directly with the U.S. Department of Education.
Student Eligibility:
- Must be enrolled at least half-time
- Must be a U.S. citizen or permanent resident
- Must be registered for Selective Service (males only)
- Must not be in default on a student loan
Borrower Eligibility:
- Must be the parent or legal guardian of an undergraduate for Parent PLUS
- Must be a U.S. citizen or permanent resident
- Must not be in default on a student loan
Credit Review:
- A credit review is required; however, there is no “debt to income” review.
- A co-borrower/endorser option is offered if the borrower’s credit is denied.
- Credit checks are valid for 120 days. For this reason, we advise that borrowers wait until summer before applying for loans for the upcoming year. Our loan processing begins in June.
Borrowing Eligibility:
- Borrowers apply for the Parent PLUS for each academic year that they wish to borrow. Multi-year loans may be consolidated.
- The loan amount may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive.
- Borrowers are encouraged to apply for the amount needed for the academic year (not semester by semester).
Loan Terms and Disbursement:
- The interest rate for Federal Direct Parent PLUS loans is fixed at 7.9%.
- The origination/default fee for the Federal Direct Parent PLUS loan is 2.5%. This fee is deducted from each disbursement of the loan.
- Disbursements are scheduled at the beginning of each semester and are deposited directly in the student’s account.
Repayment:
- Repayment begins 60 days after the loan is fully disbursed. Fully disbursed means that all installments (fall and spring) have been paid. Interest begins accruing after the first disbursement.
- Repayment of loans initiated after 7/1/2008 can be deferred until 6 months after a student graduates or ceases to be enrolled at least half-time. Parent borrowers should call the Direct Loan Servicing Center at 1-800-848-0979 to exercise this option.
- There is no pre-payment penalty.
- Consolidation options and extended or graduated repayment plans are available.
To apply for a Federal Direct Parent PLUS Loan:
- Federal Direct Parent PLUS borrowers must file the FAFSA
- Complete and return the Federal Direct Parent PLUS request form
- New PLUS borrowers will need to sign a promissory note online on the Direct Lending website:http://dlenote.ed.gov
The borrower will be contacted by JHU and the Direct Loan Servicing Center once the loan has been processed.
The Clarence Manger and Audrey Cordero Plitt Loan Fund (PLITT LOAN)
The PLITT Loan Fund is available to parents to help families pay educational expenses over an extended period of time at a low 3% interest rate. This fund was specifically designed to help parents of full-time undergraduates pay for college in regular installments, over an extended period of time, at a lower than usual interest rate. Parents cannot have an adverse credit history. Eligibility is established by the Peabody Institute after a review of the loan application form. In general, parents are eligible if combined annual adjusted gross income is between $30,000 and $150,000. The application deadline for the PLITT loan program is July 1. For additional information, please contact the Peabody Business Office at 410-234-4544.
