REMINDER: Students cannot accept a Parent PLUS Loan on My ASU. Parents must apply for the loan by following the process below. Students and parents who are going through this process for the first time are strongly encouraged to click through each step below and watch each video.

Parent steps

Step 3: Activate Your My ASU Parent Guest Access

If you already have your parent guest access to accept a Parent PLUS loan, proceed to the Accept Your Loan step.

Follow these instructions to activate your My ASU parent guest access [9].

Step 4: Accept Your Loan
  1. Log into My ASU [10], Guest Access Tab, with your own parent ASURITE user ID, and click on the "Accept Parent PLUS Loan" link. If you have more than one student attending ASU, make sure you are viewing the correct student.

  2. Make sure all the information on the form is correct and there are no errors in any of the following fields. Incorrect information will lead to delays and could result in your loan application being denied.
    • The spelling of your name
    • Your Social Security Number
    • Your date of birth
    • Your citizenship status

  3. Enter the amount that you would like to accept, but not more than the amount offered by ASU and click the continue button. Please enter a whole dollar amount when accepting your loan. Processing of your loan will initiate a credit check through the U.S. Department of Education. ASU will receive notification of the approval or denial of your Parent PLUS Loan in two to three days. You will also receive approval or denial information in the mail from the U.S. Department of Education within two weeks. For all questions regarding your credit check, including credit criteria, please call 800-557-7394.

If Your PLUS Loan Application Is Denied

Federal PLUS Loans are subject to credit approval and may be denied. There are three options available to consider when a parent is credit denied a Parent PLUS Loan.

  1. Parents whose Parent PLUS loans are declined credit may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser or may appeal the declined credit decision by documenting extenuating circumstances. Please contact the U.S. Department of Education PLUS Credit Appeal line at 800-557-7394 or online at studentloans.gov [11].

     

    NOTE: Effective March 29, 2015, federal regulations require any parent whose Parent PLUS loan was first denied credit and then subsequently approved (either with a creditworthy endorser or by documenting extenuating circumstances to the satisfaction of the Department of Education) must complete PLUS Credit Counseling. You can complete PLUS Credit Counseling at studentloans.gov [11].

    • Login to your studentloans.gov account with your FSA ID
    • Click on “Complete Loan Counseling”
    • Choose “PLUS Credit Counseling” by clicking on “Start”
    • Select PLUS Credit Counseling Type: Parent of an eligible dependent undergraduate student(s)
    • Click Start and complete the PLUS Credit Counseling for Parents

  2. If you are unable to find a creditworthy endorser or appeal the denial of your credit decision, your student may request an additional Federal Direct Unsubsidized Loan. Submit the Parent PLUS Loan Denial Funds Request form. Please be sure to include your ASU ID and signature. There are specific limits on the amount of additional unsubsidized loans that may be awarded. The maximum annual amounts are $4,000 for freshmen and sophomores and $5,000 for juniors and seniors.

  3. If one parent is credit denied for the Parent PLUS Loan and the other parent is interested in applying for it, please have your student contact Financial Aid and Scholarship Services.

  1. Complete Your Master Promissory Note.
    The Parent PLUS Loan Master Promissory Note is a multi-year feature of the Parent PLUS program. It allows you to receive future Parent PLUS Loans without completing another master promissory note as long as you remain eligible. However, if you were approved with an endorser you will need to do a new promissory note every year. You can complete your Parent PLUS Loan Master Promissory note at studentloans.gov [13]. The parent whose name is on the Parent PLUS Loan application should complete the Parent PLUS Loan Master Promissory Note. If you are borrowing a Parent PLUS Loan for more than one student, you will need to complete a separate master promissory for each student’s PLUS loan.

    • Login to your studentloans.gov account with your FSA ID
    • Click on “Complete Loan Agreement (Master Promissory Note)”
    • Choose “PLUS MPN for Parents” by clicking on “Start”
    • Complete the Master Promissory Note

  2. Parent Loan Default Resolution.
    If you receive a message that this is required, you will need to submit a Resolve Parent Default Status form [14] with documentation that a default is cleared. If you are currently in default on a federal student or Parent PLUS Loan your student may submit a Parent PLUS Loan Denial Funds Request form [12]. If you are not in default or checked that you are in default in error, you must complete this form and check the box indicating you are not in default.

  3. Eligible Non-Citizenship Documentation
    Submit the Parent PLUS Loan Citizenship Verification form [15] along with the required documentation that a default is cleared to Financial Aid and Scholarship Services [7].

 

How will my Parent PLUS Loan be disbursed?

Disbursement Details
All Parent PLUS Loan funds will be disbursed to your student through Electronic Fund Transfer (EFT) and will be applied towards your student's outstanding ASU charges no earlier than seven days prior to the start of each semester. Any remaining funds will be disbursed to your student via paper check or direct deposit to his/her personal bank account (your student can set this up through their My ASU [6]). Please see our calendar [16] for disbursement dates and other important financial aid dates.

If your student is a fall/spring student, funds will be disbursed as a fall/spring loan (half in the fall and half in the spring). Your student is only eligible for a single disbursement loan if he/she is attending only one term.

 Can I defer payment on my Parent PLUS Loan?

There are some situations where payment can be deferred. It's important to remember that if you able to secure a deferment on your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For information on deferment, please contact your loan servicer.

 

What are my repayment options?

Repayment Details

A Parent PLUS Loan is like any other loan. You, the parent, must repay the loan even if your financial circumstances become difficult or if your student does not complete their education. Parent PLUS Loan payments begin 60 days after the loan is fully disbursed. There are some situations where payment can be deferred. It's important to remember that if you able to secure a deferment on your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For information on deferment, please contact your loan servicer.

Currently there are seven repayment plans offered for Parent PLUS loans:

  1. Standard Repayment Plan – Under this plan, payments are a fixed amount of at least $50 per month and length is up to 10 years.

  2. Graduated Repayment Plan – Under this plan, payments are lower at first and then increase every two years. Length of this plan is up to 10 years.

  3. Extended Repayment Plan – Under this plan, payments may be fixed or graduated. Length of this plan is up to 25 years.

  4. Income-Sensitive Repayment Plan – Under this plan, your monthly payments are based on annual income and changes as your income changes. Length of this plan is up to 10 years.

  5. Income-Based Repayment Plan – Under this plan, you must have a partial financial hardship. Your monthly payments will be 15% of discretionary income. Your payments change as your income changes and length of this plan is up to 25 years.

  6. Pay As Your Earn Repayment Plan – Under this plan, you must be a new borrower on or after October 1, 2007 and must have received a disbursement of a Direct Loan on or after October 1, 2011. You must have a partial financial hardship. Your monthly payments will be 10% of discretionary income. Your payments change as your income changes and length of this plan is up to 20 years.

  7. Income-Contingent Repayment Plan – Under this plan your payments are calculated each year and based on your adjusted gross income, family size and the total amount of your Direct Loans. Your payments change as your income changes and length of this plan is up to 25 years.

Please contact your loan servicer to discuss which repayment plan works best for you.

A loan servicer is a company that takes care of the billing and other services on your Parent PLUS Loan. Your Parent PLUS Loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. The loan servicer will contact you to discuss the repayment plans available.

 

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