Federal Parent Loan (PLUS)

A Federal Parent Loan (PLUS) is a fixed interest rate installment loan to help parents with good credit, pay for their dependent child's education. A parent may borrow up to the student's costs of education minus any financial aid the student receives during the enrollment period. This loan is in one parent's name and the parent is responsible for repayment on this loan.

Loan Disbursement:

Generally, loan money will be disbursed to the student's account in two installments, one at the beginning and one at the midpoint of the dependent student's enrollment period.

Fees:

There is a 3% origination fee on the Federal PLUS loan. When calculating your out-of-pocket, add on the 3% fee to what you will need to borrow as that will be deducted from each PLUS loan disbursement.

Repayment:

First payment of principal and interest on the Federal PLUS loan will be due within 60 days of the final disbursement.
Interest begins to accumulate when the first disbursement is made.
The standard repayment plan is 10 years.
Payments may also be postponed while the student is enrolled (forbearance).

Interest Rate:

The interest rate for Parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.

How to apply for a Parent Loan (PLUS):

New Borrowers

Complete the Buena Vista University 2008-2009 PLUS Authorization Form and submit it to: Office of Financial Assistance, 610 W 4^th, Storm Lake, IA 50588. If you want to fill out a paper Master Promissory Note: STOP HERE. One will be mailed to you if you have so requested on the PLUS Authorization Form.
If you wish to complete the process online, go to the PLUS lender list and select the Apply button for your lender choice.
If approved, you will be prompted to complete the rest of the loan application.
Complete all required application information, including 2 adult references.
Electronically sign the Master Promissory Note (MPN) using your Department of Education PIN.
Print the MPN for your records.

Returning Borrowers

Complete the Buena Vista University 2008-2009 PLUS Authorization Form and submit it to: Office of Financial Assistance, 610 W 4^th, Storm Lake, IA 50588
If a parent was denied in the past and the student then borrowed the additional Unsubsidized Stafford Loan, you are still required to apply for the PLUS loan each year.

PLUS Denied

Any PLUS borrower with adverse credit will be denied the PLUS. If your loan is denied due to adverse credit, the system will immediately mail you specific information from the credit bureau/lender. When you receive the detail information, you will be advised of your right to an appeal process. Students may borrow the additional Unsubsidized Stafford Loan when a parent has been denied a PLUS. First and second year students are eligible for up to $4,000 and all other students are eligible for up to $5,000 in additional Unsubsidized Stafford Loan funds. (Individual eligibility will be based on cost minus other aid and student grade level.) If a parent is denied, please complete the Denial Option Form and return it to the Office of Financial Assistance.

Lender List

The following is our Lender List for the Federal Parent Loan (PLUS) program. If you wish to pursue a PLUS to help you finance your child’s education, you will first need to select a lender. To make this process easier, Buena Vista University has performed a review of repayment benefits and fees, along with what we know about customer service, to create a list of those lenders that we feel excel. Below, you will find a comparative analysis on the result of that research. You will need to indicate your lender choice on the PLUS Authorization Form, keeping in mind that you are not limited to the lenders on this list.