PLUS Loans

Requirements

In order to be considered for a PLUS loan, a parent must meet the following eligibility requirements:

• Be the biological or adoptive parent (or in some cases, the stepparent) of the student for whom you are borrowing
• Student is a dependent child who is enrolled at least half-time
• No adverse credit history as a credit check will be performed
• Both parent and child must be U.S. citizens or eligible non-citizens, not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs

Borrowing Limits

Parents can borrow up to the cost of attendance at Lake Land College, minus any other financial aid sources their student is receiving.

Interest Rate

For the 2024-2025 academic year the interest rate is 9.08%. Interest accrues on the PLUS loan as soon as the loan is disbursed.

Additional Charges

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each PLUS loan that you receive. The fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Disbursement

Lake Land College disburses loan money by crediting the student’s account and will mail any excess funds directly to the parent. Loan money is always disbursed in at least two installments.

Repayment

When you receive your PLUS loan, you will be contacted by your loan servicer. The loan servicer will provide you with information on how and when to repay your loan. For more information on PLUS Loans and to determine your PLUS loan servicer, you may log in to My Federal Student Aid.

Typically, repayment of a PLUS loan begins 60 days after the full amount you have borrowed for a school year has been disbursed unless the parent opts to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after the student is no longer enrolled at least half-time. If you are a parent borrower, you may contact your loan servicer to request a deferment.

To Apply

Parents wishing to apply for a PLUS loan should complete the following steps:

• Have your student complete a FAFSA with the Lake Land College Financial Aid Office.
• The parent then applies for PLUS loan to Lake Land College and completes a Master Promissory Note (MPN).