Receive Approval/Denial. The parent (borrower) will receive notification directly from the U.S. Department of Education on approval/denial. Individuals denied a
Federal Direct Parent PLUS Loan have the following options:
The parent may be approved with an endorser (co-signer) who agrees to repay the Federal Direct Parent PLUS Loan in the event the parent does not. The endorser may not be the student on whose behalf a parent obtains a Federal Direct Parent PLUS Loan.
The student may apply for an Unsubsidized Direct Loan based on the student's eligibility. The student will need to submit an
Additional Unsubsidized Loan Request Form along with proof of denial of the Federal Direct Parent PLUS Loan.
A parent may borrow the student's cost of attendance minus any financial aid (for example, grants, scholarships, work-study,
federal student loans) the student is already receiving for the school year.
Interest Rates and Fees
The interest rate is fixed at 6.41%. The loan fee is 4% for loans originated between July 1, 2013 and November 30, 2013. For loans in which the first disbursement is after Dec 1, 2013, the origination fee is 4.288%.
Payment may be deferred if the student is enrolled half-time. Contact Direct Loans to request deferment.
Disbursement of Funds
Loan funds are sent directly to Indiana State University from the U.S. Department of Education and credited directly to the student's account.
If the borrower applies for a full academic year loan, half of the amount applied for is disbursed at the start of the fall
semester and the other half at the start of the spring semester. Funds will first cover any charges on the student's account. Any excess funds will be refunded to the parent.