Parent Loans

Parent Loans for Undergraduate Students (PLUS) at MCC are made through the William D. Ford Federal Direct Student Loan Program. With the Direct Loan Program, funds come from the U.S. Department of Education and are repaid to the U.S. Department of Education.

Parents of dependent, matriculated students enrolled in at least six credits can apply for a Federal PLUS loan through the Federal Direct Loan Program. Parent borrowers must have good credit histories or an endorser; someone willing to repay the loan if the parent borrower fails to do so.

The yearly limit on a PLUS loan is equal to the student's cost of attendance minus other financial aid received. The interest rate is fixed at 7.9%. Borrowers are notified of interest rate changes each year on July 1. There is up to a four percent (4%) fee charged by the government for processing the loan. This fee is deducted proportionately from each disbursement of the loan.

PLUS funds are disbursed to the school in two (2) equal installments, one at the beginning of the loan period and one at the midpoint of the loan period. The funds are first used to pay school charges and any remaining funds are refunded to either the parent or the student, based on an authorization completed by the parent.

Repayment of PLUS loans begins sixty days (60) after the loan is fully disbursed. There are three different repayment plans; Standard, Extended, or Graduated. More information on these plans will be sent to parent applicants.

To apply for a PLUS loan, parents must go to the web site. Once there, a parent will need to "Sign In" to the site using their federal PIN. When signed in to the site, the parent will then select "Start PLUS Application Process".

For more information Parent Loans for Undergraduate Students, check out the Federal Student Aid website.