To request an increase in the amount of a previously requested Direct PLUS Loan, complete a Direct PLUS Loan Application by following these steps: Log in with your account username and password (FSA ID). Select PLUS Loans: Grad PLUS and Parent PLUS under the Loans and Grants heading from the top.
Get additional Direct Unsubsidized Loans.
If you're a parent and you're unable to get a PLUS loan, your child may be able to get additional unsubsidized loan funds. Normally, a dependent student can't get as much unsubsidized loan funding as an independent student can.
Yes, you can ask for more college financial aid after receiving your acceptance. Here are some steps to follow: Review Your Financial Aid Package: Understand the types of aid you've been offered (grants, loans, work-study) and the total amount.
The Double Consolidation Loophole for Parent PLUS Loans is a strategy that reduces your monthly payments through better income-driven repayment plans (such as PAYE, IBR, or SAVE) achieved by consolidating your loans twice.
You can get out of Parent PLUS Loans through forgiveness programs like PSLF or, in rare cases, by discharging the loan in bankruptcy. Otherwise, refinancing or consolidating may help lower your payments, but won't remove your obligation to repay.
The maximum PLUS loan amount you can borrow is the cost of attendance at the school your child will attend minus any other financial assistance your child receives. The cost of attendance is determined by the school.
Maybe your family's finances have changed, or maybe you have a better offer from another school you can use to negotiate. In such situations, you can submit an appeal letter requesting additional financial aid. Often, you will need to include documentation of your special circumstances and why you need more funds.
Note: You can request an increase in the amount of a Direct PLUS Loan you previously requested if it's for the same school and same award year. The loan can't exceed the cost of attendance (COA) minus other aid.
Parent PLUS loans aren't a great deal. The interest rate is 2.55% higher than the rate on the direct student loan. This year it's 8.05%, compared with 5.5% for a student loan. Origination fees are higher too: 4.228%, meaning that borrowing $10,000 will cost you $423 upfront.
Based on the information from Federal Student Aid, as of 2022, the average Parent PLUS Loan debt is $29,528. Although that might not sound like a huge amount, it depends on the parent's income.
A parent can obtain a PLUS Loan for each child in each school year. You can obtain additional PLUS Loans for any year that you have an eligible child in school.
The interest rate for Parent PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025, is currently 9.08%. This rate is fixed for the life of the loan.
Direct PLUS Loans for Parents
If there is money left over, the school will pay it to you. In some cases, with your permission, the school may give the leftover money to your child.
Please note that requests for a Parent PLUS increase can only be completed if the credit check on the original loan is still valid. If the credit check has expired, the parent-borrower will need to complete a new PLUS loan application to receive additional funds.
In most cases, you can't increase your loan after the fact.
Scholarships, grants, and loans usually disburse directly to your college to cover billed expenses. If the financial aid exceeds these costs, a refund is generated. This refund can be sent to the student or, in the case of Federal Parent PLUS Loans, sometimes to the parent, depending on the school's policies.
Appeals may not be done by phone. You should never appeal your financial aid award just to seek more money.
Talk about how you are always on the path to improving yourself and being a greater asset to the company. Emphasize any specialized skills, certifications, or knowledge that set you apart from others. If you possess skills that are rare or in high demand, you have the leverage to ask for a higher salary.
Interest accrual, interest capitalization, fees, deferment, forbearance, and grace periods can all increase your student loan balance. Paying more than the minimum each month, making extra payments, and paying interest while in school can help reduce your loan costs.
How to Use the Double Consolidation Loophole: The key to using the double consolidation loophole is to consolidate each of your Parent PLUS Loans twice. In this scenario, a borrower can have as few as two Parent PLUS Loans.
Parent PLUS loans have a fixed interest rate, and the borrower pays an origination fee for each loan. Parent PLUS loans are not subsidized, so interest begins to accrue on the outstanding loan balance as soon as funds are disbursed and continues to accrue even if the loan is in deferment.
Parent PLUS loans can potentially be forgiven after 10 years under specific conditions, such as through the Public Service Loan Forgiveness (PSLF) program after consolidation into a direct consolidation loan. Parent borrowers must enroll in the Income-Contingent Repayment (ICR) plan to qualify for PSLF.