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Student Financial Aid
Student Services  :  Student Financial Aid  :  Consumer Information

Direct Parent PLUS Loan (2009-2010) for incoming KUMC students

(Summer 2009, Fall 2009, and Spring 2010)

Steps to be completed by parent:

What is a Direct Parent PLUS loan?
The Federal Direct Parent PLUS Loan is a low-interest loan that allows a parent of a dependent undergraduate student to borrow a federal loan to assist in paying for the student’s college education.  The parent applicant must pass a credit check as part of the application process.

The Federal Loan Origination Applicant Services (LOAS) center will conduct a credit check on the Parent PLUS loan applicant. If the applicant is more than 90 days delinquent on any account, has declared bankruptcy, and/or has had a financial judgment, the Parent PLUS loan will be denied. The LOAS will issue a loan denial letter to the applicant that will identify the name and telephone number of the agency who provided the credit information. The applicant should call the agency and request a copy of the credit report. After reviewing the report, if the credit data is inaccurate, the loan denial decision may be appealed.

Please note that our office is not provided any information about the specific reason for the denial. All loan denial appeals are handled by the LOAS. The LOAS may be contacted at 800-557-7394, or you may write to the Direct Loan Origination Center at: Applicant Services, PO Box 5691, Montgomery, AL 36103-5691.

If the denial decision was based on accurate information, the applicant has the option to obtain an endorser, which is similar to a co-signer, on the loan. The LOAS will include an Endorser Promissory Note and information with the denial letter mailed to borrower.

When the LOAS center notifies our office of the loan denial, we will send out a PLUS Loan denial form to the parent applicant. The purpose of this form is to provide options for the applicant to officially communicate to our office exactly what he/she plans to do about the denial. We will not cancel the application until we receive the form.

How much can a parent borrow?
A parent can be eligible to borrow up to their student’s full cost of attendance, minus other financial aid and resources.

Example: COA $43000
less other aid awarded $20500
the amount a parent can borrow  $22500

Please contact our office at 913-588-5170 or by email at financialaid@kumc.edu to determine the amount you are eligible to borrow for the academic year. We strongly suggest you contact our office before you apply for the Direct Parent PLUS loan to verify eligibility.

What are the Eligibility Requirements?

  • Must be a parent of a dependent undergraduate student at KUMC
  • Must have completed a Free Application for Federal Student Aid (FAFSA)
  • Must be a U.S. citizen or eligible non-citizen
  • Student must be enrolled at least half-time (6 credit hours)
  • Must not have adverse credit history as determined by federal regulations
  • Must not be in default on any student loan

What is the interest rate?
Direct Parent PLUS Loan has a fixed interest rate of 7.9%. It is capped at 7.9%.

What are the fees associated with a Direct Grad PLUS Loan?
2.5% (4% with an upfront interest rebate of *1.5%)

*To keep an upfront interest rebate, student must make all of first 12 required monthly payments on time or will lose the rebate. If student loses the rebate, the rebated amount will be added back to the principal balance on the loan(s), which will increase the amount of repayment.        

When does repayment on a Direct Grad PLUS Loan begin?

Repayment begins 60 days after the final disbursement for loans disbursed prior to July 1, 2008. For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.