The Diretc PLUS is a federal credit-based loan which parents of a dependent student may borrow to help with the cost of education.  Parents may be eligible to borrow up to the total cost of attendance minus other aid received.  A parent is defined as a student’s natural mother or father, adoptive parent, or step-parent.  A parent with an adverse credit history may be denied a Direct PLUS Loan.  This is a fixed-interest-rate loan at 8.50%.  The loan program and guaranteed fund authorizes an origination fee of 3% and a default fee of 1% of the principal to be charged to the borrower. This loan is also unsubsidized; consequently, interest accrues from the date of origination and is the responsibility of the parent borrower. Payment of the loan starts  60 days after the loan has been fully disbursed for the year or can be delayed at the request of the borrower until six months after the student is no longer enrolled at least half-time.  Each year, the parent must complete a Direct PLUS Credit Decision Request and the Loan Request Form.  The parent completes the Direct PLUS Master Promissory Note only once, unless the parent decides to change his or her lender.  For ease of processing loans, it is helpful to have the same lender as your student. The Loan Request Form is available online at www.ADU.edu or at the Financial Aid Office, and the loan must be certified by the Financial Aid Office while the student is enrolled at least half-time.  The parent also must provide proof of U.S. citizenship or permanent resident status.

To see when the dollars have been credited, the parent should have his or her student look online at My.ADU.edu, Student Account.

Parents are not eligible for Federal Direct PLUS loans while their student is on provisional admission status. Parents of students on probation will become eligible during their student’s second trimester if the student achieves a 2.00 cumulative GPA and has successfully completed 60% of the credits attempted. In most cases, the loan will be retroactive to the beginning of the first trimester for the current award year.