Direct Parent PLUS Loans
Enable the parents of dependent undergraduate students with good credit histories to borrow up to the student’s cost of attendance, less any other aid received. Only biological, adoptive, or step-parents may apply for the Direct Parent PLUS Loan. Grandparents, guardians, foster parents or other relatives are not eligible to apply.
Interest rate: 7.9% fixed (a fee of up to 4% is deducted from the loan at disbursement).
Repayment Begins: The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, the parent may defer repayment while the student is enrolled at least half-time.
PLUS Loan Procedures: The parent borrower must be the student's biological or adoptive parent. Students must adhere to all UTC enrollment and Satisfactory Academic Progress standards in order to be eligible for Direct PLUS loan proceeds. Student must be enrolled in at least six credit hours in a degree-seeking program. Dependent undergraduate students are required to complete the Free Application for Federal Student Aid (FAFSA) before their parent can apply for a Direct Parent PLUS loan.
For Summer 2012, the parent must initiate the process by completing the Direct PLUS application at www.studentloans.gov. If the loan is approved, a Direct PLUS Master Promissory Note (MPN) must be completed and a UTC-specific PLUS Information Form. The Parent PLUS Information Form may be submitted to the Financial Aid via fax to 423-425-2292. If the Parent PLUS Loan is denied, the student may be eligible for an additional unsubsidized loan and, an email will be sent to the student’s UTC email account with instructions once the denial is received.
For 2012-2013, the parent must initiate the process by completing the Direct PLUS application at www.studentloans.gov. Once the PLUS application is complete, a UTC-specific PLUS Information Form. The Parent PLUS Information Form may be submitted to the Financial Aid via fax to 423-425-2292. If the loan is approved, a Direct PLUS Master Promissory Note (MPN) must be completed at www.studentloans.gov. If the Parent PLUS Loan is denied, the student may be eligible for an additional unsubsidized loan and, an email will be sent to the student’s UTC email account with instructions once the denial is received.
