are federal Direct Loans for eligible parents to help cover the remaining out-of-pocket expenses associated with their student's education. Out-of-pocket expenses are the amounts on the student's bill not covered by federal, state, and institutional aid or scholarship resources.
Parents may apply for a if their student:
- Is a dependent undergraduate student in a degree-seeking program
- Is enrolled in classes at least half-time (six credit hours) and
- Is meeting
- Has a completed and valid for the current aid year on file with ´ºÃÎÖ±²¥
Direct Parent PLUS Loans
The U.S. Department of Education will serve as the lender.
A credit check will be conducted at the time of application. The applicant must not have an . The U.S. Department of Education determines whether the applicant meets the credit history criteria. Salem State is notified only of the credit decision and has no input into it. For more information, please visit
for Direct PLUS Loans are fixed for the life of the loan. In addition to interest, a is applied to all Direct PLUS Loans. The is a percentage of the principal loan amount and is proportionately deducted from each loan disbursement. As a result, the amount disbursed will be less than the amount borrowed. Borrowers are responsible for repaying the entire loan amount, not just the amount the student receives. Be sure to include the loan fees in the amount you apply for.
Loan fees cannot be waived and must be deducted in accordance with federal law. For more information on interest rates and loan fees, please visit the
Parent PLUS Loans are unsubsidized loans, meaning interest accrues from disbursement through the life of the loan, including while the student is enrolled.
Parents cannot transfer their loans to their children. The parent is the borrower and is legally responsible for repaying the loan.
provides parents with information on Direct PLUS Loans. It includes an overview of eligibility, , and .
To loan, you must:
- Be the biological or adoptive parent (or, in some cases, the stepparent) of a dependent undergraduate student enrolled at least half-time at Salem State.
- A stepparent may borrow a PLUS Loan only if they are married to the custodial parent and their financial information was reported on the FAFSA of record.
- If a student's parent(s) are divorced, both the custodial and non-custodial parent may borrow a PLUS loan for their dependent undergraduate student.
- Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible for Parent PLUS loans, even if they have had primary responsibility for raising the student.
- Not have an .
- The borrower and student must be U.S. citizens or eligible noncitizens
- Not be in default on any federal education loan
- Not owe an overpayment on a federal education grant
To apply for a Parent PLUS Loan, complete the at . Parents will need their and password to complete the application.
If the parent applying for the Parent PLUS Loan has placed a security , they must lift the freeze with each credit bureau before starting the PLUS application. The Department of Education will not process the application if a security freeze remains on the parent’s credit file.
Parents approved for a Parent PLUS Loan must sign a (MPN) before any loan funds are disbursed to your student's account. The MPN outlines the loan’s terms and conditions and is a legally binding agreement to repay all Parent PLUS Loans received under the Direct PLUS Loan MPN.
Parents who borrow a Parent PLUS Loan for more than one child must complete a separate Direct PLUS MPN for each child's loan.
Parents should apply for the enrollment period during which their student will attend. If their student is enrolled for the entire academic year (the Fall and Spring terms), they should apply for the full academic year. Parents may apply for a single term only if they choose to do so.
If your student will be enrolled in Summer term classes, parents must apply for a separate loan for the Summer term only. Students must submit the Summer Financial Aid Application before they can be packaged for any Summer aid.
The loan will be disbursed to the student's account in two equal installments: half in the Fall term and half in the Spring term. If a student attends only one term, the loan will be disbursed within that term.
We strongly recommend that students add their parent(s) as to their TouchNet account. Authorized Users can view , the , anticipated aid, and anticipated refunds. For information on tuition, fees, and billing, please visit the following:
It is the students' and their families' personal choice regarding who should apply for a Parent PLUS Loan.
There is no borrowing limit for ; however, the maximum amount a parent may borrow is the estimated cost of attendance minus any other financial aid received.
Estimated COA - Other Financial Aid Received = Amount of PLUS Loan.
- For example, if the estimated cost of attendance is $22,000 and the student will receive $10,000 in other financial aid (including Federal Direct Loans, grants, or scholarships), a parent may borrow up to $12,000 for the academic year.
Parents may apply for an amount exceeding the estimated cost of attendance, but Salem State cannot award a loan that exceeds the cost of attendance.
The Department of Education will assign a . The loan servicer will send updates on the loan status and repayment information. The loan servicer will notify the borrower when the first payment is due.
For more information on loan servicers and current repayment plans available, please visit:
When financial aid funds are disbursed, any outstanding balances owed to the university are paid first. If there are any excess funds from your Parent PLUS Loan after the balance has been paid, a refund will be issued. Families may keep their refund or send the extra funds to their loan servicer as a payment toward their Parent PLUS Loan.
For any questions regarding refunds, please contact the Student Navigation Center.
There are for moving forward if a borrower is denied a Parent PLUS Loan.
The parent may to the U.S. Department of Education if they believe the information causing the adverse credit decision is incorrect or if there are extenuating circumstances related to the adverse credit history. The borrower must document, to the satisfaction of the U.S. Department of Education, the extenuating circumstances related to their adverse credit history.
Parents who do not wish to appeal the credit decision can obtain an (similar to a cosigner) with no adverse credit history. The endorser agrees to repay the Parent PLUS loan if the borrower is unable to repay it. The endorser cannot be the child for whom you are borrowing.
Borrowers will receive an , also known as an Award Identification Number, which you will provide to the endorser. The endorser must complete the at . They will need to create an and password. The endorser will need the borrower's last name and the to complete the .
With either option, the borrower must complete a and .
Salem State will not add an endorsed Parent PLUS Loan to the student's account until we have received the completed , , and from the Department of Education.
Students whose parents are denied a PLUS loan and who do not want to appeal the credit decision or obtain an endorser may qualify for additional Direct Unsubsidized Loan funds:
- First and Second-year students may receive up to an additional $4,000 in Direct Unsubsidized Loan funds.
- Third-year students and beyond may receive up to an additional $5,000 in Direct Unsubsidized Loan funds.
Additional unsubsidized loan funds will automatically be added to a student's existing unsubsidized loan once Salem State receives the Department of Education's loan denial.
Parents can as part of the PLUS Loan application process. During the deferment period, borrowers are not required to make payments while the student is enrolled at least half-time and for an additional six months after the student graduates, leaves school, or drops below half-time enrollment. Borrowers can also contact their loan servicer to request a deferment if they did not request one during the application process.
During any period of deferment, interest will accrue on the loan. Borrowers can pay accrued interest or have it (added to the principal balance) when they begin making payments on the loan.
If a deferment is not requested, borrowers are expected to begin making payments after the loan is fully disbursed to the student's account.
Families can review the and current at to determine which repayment plan they may be eligible for and to estimate their monthly and overall payments.
Parents can request an adjustment to their Parent PLUS Loan by submitting a written statement that includes the following information:
- Borrower's Name
- Date
- Student's Name and Salem State ID Number
- The change they would like to make to their loan
- Examples: Cancel the loan in full or for one term only, or reduce the loan amount
- If the borrower requests a change to the loan amount, please include the amount by which the loan should be decreased and the revised total loan amount.
- Amounts must be requested in whole dollars; cents are not allowed.
- The term in which the adjustment should be made.
- Examples: Fall/Spring, Fall Only, Spring Only, Summer Only
The statement must be signed with a wet, physical signature. It can be emailed to navcenter@salemstate.edu or sent via secure fax to 978-542-6876.
The adjustment request must come from the parent, as they are the legal borrower of the Parent PLUS Loan. Changes will be made to the Parent PLUS Loan once a statement is received from the parent/borrower.
Before requesting an adjustment, review your student's account to help calculate what your student will need to cover their balance. Be sure to include expenses like books and personal costs in your calculations.
Any adjustments to your loan could cause a balance on your student's account for which you will be responsible. If your student receives a refund with their current aid and the loan amount is reduced, the refund may be affected.