Parent PLUS Loans

The Federal William D. Ford Direct Loan Program - PLUS Loan for Parents of Undergraduate Students

PLUS loans are designed to help the parents or legal guardians of dependent students pay for post-secondary education. They may be obtained in addition to or in place of Stafford loans. You may use the loan money you receive only to pay for your child's education expenses at LeTourneau University. Education expenses include school charges such as tuition, room and board, fees, and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.

Interest Rates:

• The interest rate on Direct PLUS loans is fixed at 7.9 percent. 

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

PLUS borrowers may receive up to the student's estimated cost of education less other financial aid, including Stafford loan assistance for which the dependent student is eligible. Borrowers will be subject to a credit evaluation. If a PLUS loan is denied, the dependent student may be eligible for an unsubsidized Stafford loan.

Repayment of the PLUS loan will begin within 60 days after the final disbursement, unless the borrower qualifies for deferment. Interest must be paid or capitalized (added to the principal) if payment is deferred.

How to apply online:

• The PLUS loan application may be completed at  www.studentloans.gov.  E-signing is available.  When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to the Department of Education's satisfaction that there are extenuating circumstances related to your adverse credit history.