Parents and Families

Plus Loans

If you require more aid than what has been provided by your grants, scholarships and Stafford loans, you may want to consider a PLUS or alternative loan to cover your remaining tuition costs and/or for your books & supplies or living expenses.
Students should NOT apply for their PLUS or alternative loans until they receive their financial aid package each tear. Your financial aid award letter provides important information regarding your remaining balance and maximum eligible loan amount. CCS strongly recommends you budget carefully before determining your loan amount and take only what you will need.

What is the PLUS Loan?

The federal Parent PLUS loan is intended to assist parents in paying for their child’s education or, more often, to supplement the financial aid received by their student.

Who is Eligible?

Parents of dependent students

The parent must:

Be a u.S. citizen, U.S. national or eligible non-citizen,
Not be in default as a borrower or cosigner on any educational loan, and not owe a refund on an educational grant,
Be creditworthy as determined by direct loans.

The student for whom the parent is borrowing must:

Have completed the Free Application for Federal Student Aid (FAFSA).
Be dependent as defined by the U.S. department of education (see FAFSA) and certified by the school,
Be a U.S. citizen, U.S. national or eligible non-citizen,
Be registered for, or accepted for, a minimum of six credit hours at CCS each semester,
Be making Satisfactory Academic Progress (SAP) towards a degree,
Not be in default as a borrower on any educational loan or owe a refund on an educational grant.

Are Plus Loans Guaranteed Like Stafford Loans?

No – PLUS loans are not guaranteed. Borrowers must pass a credit check in order to be approved for the PluS loan. therefore, it is very important that parents wishing to utilize the PluS loan apply and confirm their approval before the school year begins in September.

How Much May I Borrow Yearly?

Cost of attendance minus other financial aid awarded. Check your financial aid notification letter for your maximum yearly eligibility. CCS strongly encourages you to create a budget and borrow only what you need. PluS loan funds may be used to pay for the student’s related expenses in addition to tuition and fee costs. related educational expenses include books & supplies, rent/housing, food, transportation and personal expenses (toiletries, laundry, etc.) make sure to borrow what you need for the entire academic year (in most cases September – may), not one semester at a time. multiple applications can have a negative effect on your credit history. You should also remember to consider the loan fees that will be deducted at disbursement when determining your loan amount. (See information below.)

What is the interest rate?

Fixed rate of 7.9%.

Are There Any Fees Associated With These Loans?

Direct PluS loans have a 4.0% origination fee charged. However, the federal government also offers an up-front interest rebate of 1.5% on their Stafford loans, so only 2.5% is actually deducted from the loan before it is disbursed. in order to keep the up-front rebate, you must make the first 12 required monthly payments on-time, not counting approved periods of deferment and forbearance. if the first twelve required payments are not made on time, the 1.5% rebate amount is added back into the principal balance.

When Does Repayment begin?

Generally begins 60 days after the second disbursement. for most families, this means march of the academic year. However once your loan has been disbursed you may request that repayment be deferred during periods while your student is enrolled at least half-time (6 credits). Contact the direct loan Servicing Center at 800.848.0979 for more information. the minimum monthly payment is $50 but will be dependent on the amount you borrow.

I’d Like to Apply for a PLUS Loan. What Do I Do Now?

Complete CCS’s PLUS Loan Application for Parents of Dependent Students. Copies of this application can be obtained by clicking here or by contacting our office.
Visit www.dlenote.ed.gov and complete the direct loan master Promissory note (MPN) for Parent PluS loans. The mPn details the terms of the loan and the responsibilities of the borrower. it is a contract with the federal government and signing it is a pledge to repay all the loans disbursed to you during your student’s education. You will be notified as soon as possible if your loan is denied.
Once your loan is disbursed, visit www.dl.ed.gov/borrower for detailed account summaries and information on paying for and managing your loans.
The initial application is the only time you will need to complete the PluS master Promissory note for CCS. CCS’s Loan Application for Parents of Dependent Students will need to be completed each academic year you wish to request PluS loan funds.

If you do not have web access, contact the CCS financial aid office for assistance.

What Should I Do if I’m Denied?

To appeal credit denials or add an endorser, contact the COD School relations Center at 800.557.7394.
Dependent students whose parents are denied for the PluS loan are eligible to borrow an additional $4000 - $5000 in unsubsidized Stafford loan funds. Though this amount is often less than is required, it can be helpful in reducing the overall costs.
Having your student apply for an alternative loan with a co-signer may also be a possibility to consider.
If you are unable to secure a necessary loan to supplement your student’s financial aid package, please contact our office to discuss other alternatives. CCS strongly encourages students and families to have all funding in place before the enrollment period begins and charges apply.

How is the Loan Disbursed?

Unless special arrangements are made with the financial aid office, the loan will be disbursed electronically to CCS in two equal payments, one for each semester.

Loan funds must first be used toward the balance owed at CCS. if funds remain after the balance is paid, a refund check will be issued for the excess by the CCS Business Services office. these funds should be used only for the student’s valid educational expenses, such as books & supplies, rent, food and transportation.

When a PluS loan has been taken, refund checks are processed in the parent’s name unless specified in writing by the borrower.

First time borrowers must wait 30 days from the beginning of the semester before their loans may be applied to their accounts. therefore, for the first semester, refund checks are not available until roughly 5 weeks in to the semester. first-time students will need to make other arrangements to cover their expenses until their funds arrive.