Parent PLUS Loan

About

A Parent PLUS Loan is a loan that a parent (who may be a natural, adoptive, step, or divorced parent), borrows from the federal government to help pay for their child’s educational expenses while he/she attends Community College of Denver.

This loan is not based on income-to-debt ratio. Parent PLUS Loans are approved for parents who have a good credit rating. Your loan will be reported to credit agencies and becomes a part of your credit history.

Parents who have an adverse credit history will not be approved. Federal regulation classifies an individual as having an adverse credit history if they are 90 days or more delinquent on any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt during the five years preceding the date of the credit report.

Loan repayment is not deferred, unless the parent is enrolled at least half time at an eligible school.

The Parent PLUS loan application may be completed online at StudentLoans.gov or via hardcopy submission. All items must be completed in the Parent PLUS Loan Borrower Information Section, with only one parent as the borrower for the loan. Complete, sign, and return your Parent Plus Loan Application to the Office of Financial Aid.

Parent PLUS Loan eligibility is contingent upon approved credit. The result of your credit check will determine your next steps.

If your credit is approved: 

If your credit is denied:

  • Direct Loans will send you information on how to repair your credit or obtain an endorser.
  • If your credit is repaired or you obtain and endorser, you can complete an electronic Master Promissory Note (eMPN)
  • Your Federal Student Aid PIN is required.

If your credit is denied and you are not able to obtain an endorser or repair your credit:

  • Your child may borrow an additional unsubsidized loan.
  • The maximum additional loan that can be borrowed is $4,000 in unsubsidized loan funds.
  • The student must accept the loan and submit an eMPN, if required.

Each semester, your Parent PLUS Loan will be credited to your child’s tuition account after all requirements are met. It is applied first to the total tuition and fee expenses for the semester. If your child’s total financial aid (other than work-study) exceeds the total expenses, he/she will have a credit balance that will be refunded to him/her. Financial aid refunds are mailed directly to the student.

  • Be registered for a minimum of six (6) credits hours
  • Not be in default on any other type of student loan
  • Maintain satisfactory academic progress

Yes, you pay an origination fee equal to four percent of the total of the loan less a 1.5% rebate. That is why the amount you actually receive is less than the amount shown on the Parent Plus Loan Application.

The U.S. Department of Education applies a 1.5% rebate to all Federal Direct Loans. The origination fee will remain the same, but a 1.5% rebate of the principal will be paid at each disbursement. To keep the rebate, you must make 12 consecutive on-time payments after the loan goes into repayment.

The interest rate is fixed at 7.9 percent.

Interest begins to accrue as soon as the first disbursement of the Parent PLUS Loan is credited to the student’s tuition account.

Repayment begins when the loan has been fully credited to the student’s tuition account. The first payment is due within 60 days from that date. For a fall/spring loan this would typically be in March.

Parents borrowing for their dependent may be able to deduct interest paid for the first 60 months of repayment on educational loans. This deduction is available even if you do not itemize other deductions. Check with your tax advisor or the IRS for more information.

Direct Loan Servicing Center at 1.800.848.0979.

You will receive a “Welcome Letter” from the Direct Loan Servicing Center after they have received information from Community College of Denver notifying them that we have credited your loan funds to your student’s tuition account. The servicer will oversee your loan account until your loans are repaid in full.

Important Notes Regarding this loan are as follows:

  • The parent borrower is obligated to repay the gross amount of the loan and accrued interest. The borrower may prepay all or any part of the unpaid balance of the loan at any time without penalty.
  • The repayment period begins on the date the loan is fully credited to the student’s tuition account. The first payment is due within 60 days from that date.
  • Payments will be made to the U.S. Department of Education. The U.S. Department of Education will provide the borrower with an opportunity to select a repayment plan. If the borrower does not select a plan, the Department will assign the borrower the Standard Repayment Plan.