To Apply for a Federal PLUS Loan
|A Valid FAFSA is required before steps below can be completed||New PLUS Borrowers||Returning PLUS Borrowers|
|Step 1a: Parent completes online application with Department of Education|
|Step 1b: If required, complete PLUS loan counseling|
|Step 2: Complete online PLUS loan Master Promissory Note||Only if an endorser was used for the previous PLUS loan|
The PLUS Loan Application process begins at www.studentloans.gov. The application process involves the following simple steps:
1a. Parent Completes Online Application with Department of Education beginning April 1, 2017
The credit check is reviewed for adverse credit history. It is not a debt – income ratio review. On this screen the parent may request a dollar amount or authorize the maximum loan available.
Direct PLUS loans have a 4.276% origination fee charged by the U.S Department of Education. For example, a $10,000 loan will have a 4.276% origination fee ($427.60) that would be deducted from the loan before disbursement. $9,572 would disburse to the school. The borrower’s loan is for $10,000 and they will need to repay $10,000.
If the loan application is not approved, additional options can be found here.
McDaniel College will be notified electronically about the results of your PLUS application.
1b. If Required, Complete PLUS Loan Counseling
If informed by Department of Education to complete PLUS Counseling, choose Complete Counseling, and then choose PLUS Counseling.
McDaniel College will be notified electronically that you have completed your PLUS Counseling.
2. Complete online PLUS loan Master Promissory Note.
The PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college provided you do not require an endorser. Visit www.studentloans.gov to complete the Master Promissory Note.
Note: You must have a Federal Student Aid ID (FSA ID) before completing and signing the electronic MPN. If you do not have an FSA ID, please create one at https://fsaid.ed.gov/npas/index.htm
McDaniel College will be notified electronically that you have completed your MPN.