Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. BPCC participates in the Federal Family Education Loan (FFEL) Program which offers PLUS loans. Your parents can get a PLUS loan for you, provided they also have an acceptable credit history.
For a FFEL PLUS Loan, your parents must complete and submit a PLUS Loan application, available from your school or lender. Your parent may apply on-line or via phone by contacting the lender of choice. The lender will notify the school via fax, if your parent is approved or denied the PLUS loan. If your parent is approved, the school completes its portion of the application electronically and sends the information to your parent’s lender for evaluation.
If your parents don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so. Your parents might also qualify for a loan without passing the credit check if they can demonstrate that extenuating circumstances exist. You and your parents must also meet other general eligibility requirements for federal student financial aid.
The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.
Your parents’ lender (for a FFEL PLUS Loan) will send the loan funds to BPCC. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, your parents will receive the amount as a check, unless they authorize the amount to be released to you or to be put into your school account. Any remaining loan funds must be used for your education expenses.
For More Information about PLUS Loans, click here.