• Federal PLUS Loans (Parent Loans)

  • William D. Ford Federal Direct PLUS Loans are low-interest loans for parents to help pay for the cost of a dependent student’s education after high school. For financial aid purposes, a student is considered “dependent” if he or she is under 24, unmarried, and has no legal dependents at the time the FAFSA is submitted. Exceptions are made for veterans, wards of court, and other special circumstances. The lender is the U.S. Department of Education rather than a bank or other financial institution.

    Parents, your child must have completed the entire MHCC financial aid process before a Federal Direct PLUS Loan will be processed for the year.

    Steps to apply for a Direct PLUS Loan:

    *The MPN that you sign will remain in effect for 10 years. This means you will not be required to sign a new MPN at MHCC each year, provided you received a disbursement within 12 months of signing your MPN.

    Your loan will be processed once MHCC has received all of the above documents. You must apply at least two weeks before the term ends if you want a loan for that term.

    General information about Direct PLUS Loans:

    • Student must be enrolled for at least 6 credits working toward an eligible degree or certificate.
    • These loans help pay for a dependent student’s education expenses up to the cost of attendance minus all other financial assistance.
    • Interest is charged during all periods.
    • You must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application.
    • There normally is an origination fee that the government takes out of your loan each term.
    • Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
    • Parent and dependent student must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant.
    • You may cancel all or a portion of your loan if it has not disbursed to you.