Parent
Loans • Supplemental
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Parent
Loans
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Federal
Direct Parent PLUS (Parent Loan for Undergraduate Students). Federal Direct Parent PLUS loans are federally guaranteed loans available to parents of undergraduates. There is no financial need requirement to receive these loans. You do not need to contact a lender; these loans are made directly with the U.S. Department of Education.
Student Eligibility:
- Must be enrolled at least half-time
- Must be a U.S. citizen or permanent resident
- Must be registered for Selective Service (males only)
- Must not be in default on a student loan
Borrower Eligibility:
- Must be the parent or legal guardian of an undergraduate for Parent PLUS
- Must be a U.S. citizen or permanent resident
- Must not be in default on a student loan
Credit Review:
- A credit review is required; however, there is no “debt to income” review.
- A co-borrower/endorser option is offered if the borrower’s credit is denied.
- Credit checks are valid for 120 days. For this reason, we advise that borrowers wait until summer before applying for loans for the upcoming year. Our loan processing begins in June.
Borrowing Eligibility:
- Borrowers apply for the Parent PLUS for each academic year that they wish to borrow. Multi-year loans may be consolidated.
- The loan amount may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive.
- Borrowers are encouraged to apply for the amount needed for the academic year (not semester by semester).
Loan Terms and Disbursement:
- The interest rate for Federal Direct Parent PLUS loans is fixed at 7.9%.
- The origination/default fee for the Federal Direct Parent PLUS loan is 2.5%. This fee is deducted from each disbursement of the loan.
- Disbursements are scheduled at the beginning of each semester and are deposited directly in the student’s account.
Repayment:
- Repayment begins 60 days after the loan is fully disbursed. Fully disbursed means that all installments (fall and spring) have been paid. Interest begins accruing after the first disbursement.
- There is no pre-payment penalty.
- Consolidation options and extended or graduated repayment plans are available.
To apply for a Federal Direct Parent PLUS Loan:
- Federal Direct Parent PLUS borrowers are encouraged to complete the Free Application for Federal Student Aid (FAFSA), but may opt for completing the PLUS Loan Data Sheet in lieu of the FAFSA. The PLUS Loan Data Sheet (only for parents who are not completing a FAFSA) is available on our website: http://www.jhu.edu/finaid/elecserv/index.html
- Complete and return either the Federal Direct Parent PLUS request form, available on our website: http://www.jhu.edu/finaid/elecserv/index.html
- New PLUS borrowers will need to sign a promissory note online on the Direct Lending website:http://dlenote.ed.gov
The borrower will be contacted by JHU and the Direct Loan Servicing Center once the loan has been processed.
Federal
Parent PLUS with a private lender. If a borrower has a Parent PLUS from a previous year at JHU with a private lender and wants to continue with that private lender, JHU will continue to process those loans with private lenders. The borrower should contact the lender directly to apply for the 2008-2009 academic year.
Supplemental
Student Loans (Top)
Some states offer educational loan programs to residents of that state with interest rates and repayment terms that are equal to or better than the federal student and parent loans. We recommend that students and parents check with their state higher education agencies about the availability of these loans.
Private banks also offer loan programs for educational costs. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable. Johns Hopkins University recommends that students exhaust their eligibility for federal loans before considering private loan programs. If you are uncertain about your eligibility for federal loans, please contact the financial aid office prior to initiating a private loan application.
For state or private loans, the borrowing limit is the total cost of education for the academic year (as defined by Johns Hopkins University) less any financial aid.
Questions to ask a Private Lender (Top)
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What is your lowest interest rate and fee combination and how can I get it? Is the rate only for a limited period or is it for the life og the loan?
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For variable rate loans, is there a limit on how high the variable rate can go? How often is the interest rate adjusted, and how is it determined?
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What interest rate can I get on a fixed-rate loan?
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How long will I be repaying the loan? Is there any penalty for paying it off early?
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When do I have to start making payments? How long can I defer payments while I'm in school? If I go to graduate school and defer payments, how much will I owe when I do start making them?
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Will I lose my discount for paying on time if I have only one late payment or if I ask for a change in the payment schedule?
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What proportion of your borrowers get the discounts you offer? Are your discounts guaranteed or are they subject to change later?
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Would you allow me to defer or reduce my payments temporarily because of economic hardship? Under what circumstances and for how long?
-- From the Project on Student Debt (see website below)
Consumer Information on
Student Loans (Top)
For more information on comparing lender benefits, see the following website:
http://projectonstudentdebt.org/loandiscounts.vp.html
For questions to ask when considering a private loan, see the following website:
http://projectonstudentdebt.org/private_loan_questions.vp.html
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