Federal PLUS Loans for Parents
The PLUS (Parent Loans for Undergraduate Students) program is a federally-funded, credit-based loan for eligible parent borrowers to use to help fund their dependent child’s education-related expenses while attending CMCC.
Eligibility for the PLUS Loan
Parents wishing to borrow a PLUS Loan on behalf of a CMCC student must be the student's biological or adoptive parent or stepparent. The student must be a dependent student (parental information was required to complete the student’s FAFSA) who is enrolled at least half-time (6 or more credits) each semester.
Parent PLUS loan borrowers cannot have an adverse credit history. In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs (further information can be found at www.studentaid.ed.gov).
Loan Limits, Interest Rate, and Fees
There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child's education minus any other financial aid received. The CMCC Financial Aid Office will determine the maximum amount that can be borrowed.
The interest rate for PLUS Loans is adjusted every July 1st. For the period July 1, 2016 – June 30, 2017 the interest rate is 6.31%. Interest is charged on PLUS Loans during all periods, beginning on the date of the loan's first disbursement.
In addition to interest, the borrower pays a loan origination fee that is a percentage of the principal amount of each PLUS Loan that you receive. The federal government will deduct the fee from each loan prior to disbursement. For the period October 1, 2016 – September 30, 2017 the loan fee is 4.276%.
Applying for the PLUS Loan
The parent borrower should complete a PLUS Application and Master Promissory Note (MPN) with the Federal Direct Loan program. The MPN is a legal document in which the parent promises to repay the loan and any accrued interest and fees to the U.S. Department of Education. The MPN also explains the terms and conditions of the loan.
- The parent borrower goes to StudentLoans.gov and signs into the site using the same FSA ID used to sign their child’s FAFSA (if you do not have or do not remember your FSA ID, you can obtain it at https://fsaid.ed.gov.)
- Once signed in, select the option to Request Direct PLUS Loan
- Select the Parent PLUS option
- Complete the steps listed and submit your PLUS application. If you are approved, you will be notified on the screen and your information will be forwarded to the College for processing. If you are denied, you will be notified on the screen and given the option of applying with an endorser.
Disbursement of the PLUS Loan
Unless specifically requested, the PLUS Loan will be disbursed in two equal parts, one for the fall semester and one for the spring. Disbursements will be scheduled to arrive after the end of each semester’s add-drop period.
As with other sources of financial aid, the PLUS Loan funds will first go toward paying any outstanding balance owed to the College by the student for tuition, fees, room, board and any other authorized charges. If the PLUS Loan disbursement amount exceeds the balance owed to the College, the excess loan funds will be refunded to the parent borrower. The parent borrower will have the option during the loan application process of authorizing any excess PLUS Loan funds to be refunded to the student.
For additional information, please contact us:
Office of Financial Aid
Central Maine Community College
1250 Turner Street
Auburn, ME 04210
Phone: (207) 755-5328
Fax: (207) 755-5482
8:00am – 7:00pm Mondays-Thursdays
8:00am – 4:30pm Fridays