Federal Parent PLUS Loans
Direct Federal Parents PLUS Loans are unsubsidized federal loans for the parents of dependent students. These loans allow parents to fill the gap between the overall cost of attendance and existing student financial aid.
The parent borrower must be the student's biological or adoptive parent (step parent if listed on the FAFSA). The student must be a dependent undergraduate student who is enrolled at least half-time in a degree-seeking program (parents may not borrow on behalf of independent undergraduate students or graduate students). The student must have a completed FAFSA on file with Virginia Tech. The student must meet all other Title IV Federal Financial Aid program requirements. The student and parent must be U.S. citizens or eligible noncitizens and must not be in default on any federal education loans or owe an overpayment on a federal education grant.
Myth Busters for Loans
1. You will not overpay interest when you borrow all at once for a full academic year because you only pay interest on the amount disbursed.
2. When you apply for a loan for the full academic year you will have one credit check and one loan payment.
3. If you opt for more than one loan, you may run the risk of being denied on future applications.
4. If the student plans on being full-time for both semesters, your bill should be very similar both terms. Please review the tuition and fee schedule from the Bursar.
5. When you apply for one loan at the beginning of the academic year, you will have peace of mind knowing that the aid you applied for is in place for the entire academic year.
To complete an online Parent PLUS loan application and sign the master promissory note, the parent must create a FSA ID. The Department of Education's PLUS Application site combines the Federal Direct Parent PLUS Loan application and Master Promissory Note under one process. Please apply at least 30 days before the bill due date to ensure timely processing of the loan. Note: If the Parent Borrower selects an unknown loan amount on the Parent PLUS Loan application, the loan will automatically be certified up to the student’s Cost of Attendance.
Note: If the parent borrower elects to have excess funds refunded to them, a paper check will be mailed to the parent’s permanent address listed on the application. Choosing to have excess funds refunded to the student allows access to the funds 5-10 days sooner with direct deposit into the bank account listed on Hokie Spa.
In order to obtain the loan processed, you will need to complete a Master Promissory Note. If you received an initial denial for your original loan application and later received approval with an endorser or an appeal, the borrower will need to complete PLUS Counseling. Borrowers complete these requirements at Federal Student Aid.
Certification and Disbursement
After the Federal Direct Loans approves your PLUS Loan, Virginia Tech takes additional steps to certify the loan amount and to disburse it toward the student's tuition, fees, on-campus housing and on-campus meal plan. Our office can only process the loans up to the requested amount or maximum of the student's cost of attendance minus other financial aid for the loan period selected. Excess funds will be refunded to the parent or student as designated on the PLUS application.
Parent borrowers may make changes to the PLUS Loan during the school year and after the loan has disbursed. Please email firstname.lastname@example.org to reduce or cancel the Parent PLUS Loan.