Parent PLUS Loans Overview
What Are Parent PLUS Loans?
Parent Loans for Undergraduate Students (PLUS) enable parents of dependent, undergraduate
students enrolled in at least 6 credits to borrow funds to cover educational costs.
Parents can borrow up to the cost of attendance minus any other financial aid. Each
borrowing parent must complete a separate application.
Timeline for 2024-25 Parent PLUS Loan Processing
- Application Opens: May 15, 2024
- Verify Application: Students can check their PLUS Loan application status in BU BRAIN starting mid-June 2024. Look for "Satisfied Requirements" in the HOME section.
- Loan Requirements: Completed loan requirements will be viewable in BU BRAIN from mid-June 2024.
- Loan Disbursement:
- Fall/Spring loans will be added to financial aid offers starting mid-June 2024.
- Summer session loans will be added once processed.
- Refunds: Any refund generated from a PLUS Loan disbursement will typically go to the parent unless specified otherwise during the application.
Important Note: No funds will be disbursed until all application requirements are met.
Interest Rate and Fees
Interest Rate: 9.083% (effective July 1, 2024); interest accrues upon disbursement.
Origination Fee: 4.228% for loans disbursed between October 1, 2020, and October 1, 2024. You will
repay the full amount borrowed plus interest, but only 95.772% of the gross loan will
be disbursed.
How to Determine Borrowing Amount
- Complete the FAFSA: Dependent students must submit the Free Application for Federal Student Aid (FAFSA) to receive a financial aid offer. Notifications will be sent via email directing students to BU BRAIN.
- Estimate Loan Amount Needed:
- Log in to my.binghamton.edu.
- Click on the BU BRAIN icon.
- Navigate to the "Financial Aid" tab.
- Select "Award Offer" and then "View SUNY Financial Aid Plan." Use the Net Cost section to estimate the Parent PLUS loan amount needed.
Application Steps
Step 1: Apply for a PLUS Loan (Starting May 15)
- Use your FSA ID and password to log in to studentaid.gov
- Select "Start PLUS Application Process," then choose "Parent PLUS."
- Contact Customer Service at 1-800-557-7394 for assistance.
- You'll receive an instant credit check upon completing the application.
Credit Check Considerations:
A poor credit history (e.g., bankruptcy, foreclosure, or significant delinquent debts)
may result in denial.
Step 2: If Approved
- First-time borrowers must complete a PLUS Master Promissory Note (MPN). Notification of approval will be sent to Binghamton University.
Step 3: If Denied You have three options:
- Not Pursue the PLUS Loan: Your student may receive additional Federal Direct Unsubsidized Loans (up to $4,000 for first- and second-year students; up to $5,000 for third- and fourth-year students).
- Provide an Endorser: A creditworthy endorser can help secure the loan. They must pass a credit check and sign a promissory note.
- Credit Appeal: If you wish to document extenuating circumstances, additional information will be sent to you, and you'll need to contact applicant services for guidance.
Repayment Options
Repayment Begins: 60 days after the last disbursement for the academic year.
Payment Choices: Parents can pay interest monthly, quarterly, or choose to capitalize the interest.
Deferment Options: Payments can be deferred for 6 months after the student graduates or drops below 6
credits. For repayment questions, contact your loan servicer.
