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Federal Loans to Parents

Colorado State University participates in the William D. Ford Direct Loan Program (Direct Loans).  This means that the PLUS Loans we offer are funded by the Department of Education to the parent, on behalf of the student.  A PLUS Loan is automatically offered with the rest of a student's aid after submitting a FAFSA application. You, the parent, are responsible to repay your parent loans even if your student does not complete their program.  You are legally obligated to repay your loans so we encourage parents to fully read and understand the terms and conditions before accepting a loan. 

The minimum requirements for consideration of any federal loan is a completed FAFSA application, the student be admitted into a degree seeking program, and the student be enrolled at least half-time.  You must be the natural/adoptive parent or be a stepparent whose income information was included on the FAFSA to be an eligible borrower.
 

- Credit Information

  • A PLUS loan is contingent on a credit check of the parent borrower.  Parent PLUS Loans are not based on your credit score or income-to-debt ratio.  Parent PLUS Loans are approved for parents who do not have an adverse credit history.  Your loan will be reported to credit agencies and becomes a part of your credit history.
  • Federal regulation classifies an individual as having an adverse credit history if they are 90 days or more delinquent on any debt as of the date of the applicant's credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the applicant's credit report, and the total combined outstanding balance of those debts is greater than $2,085; or any of the following conditions during the five year preceding the date of the credit report: default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt.
  • You will be notified in writing by Direct Loans if your credit check is denied.  You will have the option to appeal the credit decision or obtain an endorser if you still want to pursue the Parent PLUS Loan.  If you successfully appeal the denied credit decision or obtain an endorser you will need to complete PLUS Counseling through www.studentloans.gov
  • If you do not appeal the credit decision or obtain an endorser, your student can contact Student Financial Services regarding possible additional unsubsidized loan in the student's name.

- Next Steps

  • If you, the parent, did not previously complete a PLUS Direct Loan electronic Master Promissory Note (eMPN) for your student, complete it online at www.studentloans.gov.
  • The parent who submitted their information for a credit check must be the same parent who completes the MPN.
  • Each semester, after all requirements are met, your Parent PLUS Loan will be paid to your student's University account.  It is applied first to the total University expenses for the semester.  If your student's total financial aid (other than work-study) exceeds the total University expenses, your student will have a credit balance that will be refunded to them.

- Interest Rate

  • Beginning July 1, 2015
    • Direct Parent PLUS Loans first disbursed on or after July 1, 2015 and prior to July 1, 2016 will have a fixed interest rate of 6.84 percent.
  • Beginning July 1, 2014
    • Direct PLUS Loans first disbursed on or after July 1, 2014 and before July 1, 2015 will have a fixed interest rate of 7.21 percent
  •  This loan is a type of unsubsidized loan so interest does accrue while your student is in school or if the loan is in deferment.

- Fees

  • Beginning October 1, 2015
    • Direct Parent PLUS loans first disbursed on or after October 1, 2015 and prior to October 1, 2016 will have a loan origination fee of 4.272 percent
  • Beginning October 1, 2014
    • Direct Parent PLUS loans first disbursed on or after October 1, 2014 and before October 1, 2015 will have a loan origination fee of 4.292 percent.

- Repayment and Deferment

  • Repayment begins 60 days after the loan is fully disbursed if the borrower does not request a deferment. The parent borrower can contact their servicer after the loan has disbursed to request a deferment for up to 6 months after the student leaves school or drops below half-time.  Interest will be capitalized at the end of the deferment period.
Loan Repayment Charts
  Standard Repayment Plan Extended Repayment Plan Graduated Repayment Plan
Monthly Payment Amount: fixed Monthly Payment Amount: fixed Monthly Payment Amount: gradually increases about every two years
Minimum Payment: $50 Minimum Payment: $50 Minimum Payment: greater of monthly interest or half the payment under the Standard Repayment Plan
Maximum Repayment Period: 10 years Maximum Repayment Period: varies from 25 to 30 years, depending on amount owed Maximum Repayment Period: varies from 12 to 30 years, depending on amount owed
Amount Owed at Repayment Monthly Payment Years to Repay Total Amount Repaid (With Interest) Monthly Payment Years to Repay Total Amount Repaid (With Interest) Monthly Payment Years to Repay Total Amount Repaid (With Interest)
$2,500 50 5 $3,042 Not Available $25 12 $3,940
$5,000 60 10 $7,248 $34 12 $8,471
$7,500 91 10 $10,872 $51 12 $12,707
$10,000 121 10 $14,496 $66 15 $18,783
$15,000 181 10 $21,744 $99 15 $28,175
$20,000 242 10 $28,992 $132 20 $43,351
$25,000 302 10 $36,240 $165 20 $54,189
$30,000 362 10 $43,488 $249 20 $59,777 $198 20 $65,027
$40,000 483 10 $57,984 $306 25 $91,824 $263 25 $98,767
$50,000 604 10 $72,480 $383 25 $114,780 $329 25 $123,459
$60,000 725 10 $86,976 $436 30 $156,989 $395 30 $166,818
$70,000 846 10 $101,472 $509 30 $183,154 $461 30 $194,620

The information provided is accurate as of the date of publication (February 2015) and may change without notice. Colorado State University is an equal opportunity/affirmative action institution and complies with all federal and Colorado State laws, regulations, and executive orders regarding affirmative action requirements in all programs. The Office of Equal Opportunity is located in 101 Student Services Building. 

- Additional Information and Applying

  • To apply online for a Federal Direct PLUS loan through our Web site, Click Here.