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Understanding the Parent PLUS Loan

More information on Direct PLUS Loans for Parents can be found on U.S. Department of Education’s Federal StudentAid website. If you have more questions, please contact the Financial Aid Office.

What is a Parent PLUS Loan?

A Parent PLUS Loan is a federal loan to help parents pay for their dependent student’s education costs, covering gaps left by other financial aid.

When to Apply

Apply starting May for incoming and returning students to ensure processing by early July.

Disbursement

Funds are disbursed 10 days after the first day of class each semester.

Important Notes

  • Approval may take 1-3 business days to be received by the financial aid office
  • Processing may take up to a week
  • Both parent and student will receive an email with the application status once processed

Eligibility Requirements

Parent:

  • U.S. citizen or eligible non-citizen
  • No adverse credit history

Student:

  • Enrolled at least half-time in an eligible undergraduate program at an eligible school (e.g. Earlham College)

How to Apply for a Parent PLUS Loan

1

Complete FAFSA

Both parent and student must fill out FAFSA. Once completed, Earlham College will send a financial aid offer.

2

Calculate Loan Amount

Consider how much you need to borrow. You can either specify an amount or choose to apply for the maximum loan available.

We recommend applying for the maximum amount for the entire academic year instead of just one semester. This ensures that the loan will cover the gap after all other aid is applied. If the costs change during the year, you can request an adjustment to the loan amount.

3

Apply Online

After completing the application, receive instant approval or denial. Note: This approval or denial is not the same as Earlham College receiving your application. If
approved, our loan processor will start working on your application.

4

Sign the Master Promissory Note (MPN)

After approval, sign the MPN to agree to repay the loan.

If Denied

You will receive a letter explaining options.

Option 1: Pursue an endorser (someone who agrees to repay if you default). Please work with our loan processor for more details regarding this option.

Option 2: Request additional unsubsidized loan by having your student complete the Financial Aid Update Form.