Federal Parent Plus Loan

Parent PLUS loans are available to the parents or stepparents of dependent undergraduate students. These credit-based loans are not based on federal need or subsidized by the government, but students must file a FAFSA in order for their parents to qualify for a Parent PLUS loan.

Interest is charged on Direct Parent PLUS loans during all periods, beginning on the date of the loan’s first disbursement. There is no annual limit to the amount that can be borrowed through the Parent PLUS loan program. In general, parents may borrow the difference between the cost of the student’s education and any other financial aid received. PLUS loans may also be used to pay for all or part of the expected family contribution. In addition to the interest, parents pay a loan fee.

For Parent PLUS loans that are first disbursed on or after July 1, 2008, parent borrowers have the option of deferring repayment based on the enrollment status of the dependent student on whose behalf a Direct PLUS loan was obtained. Specifically, Parent PLUS loan borrowers may defer repayment while the dependent student on whose behalf the loan was obtained is enrolled on at least a half-time basis, and during the six-month period after the dependent student on whose behalf the loan was obtained ceases to be enrolled on at least a half-time basis.

If a Parent PLUS loan borrower does not request a deferment, the first payment on the loan will be due within 60 days after the loan is fully disbursed.

Applications for Federal Direct Parent PLUS loans are available on the Caltech Financial Aid Office website. Applications must be submitted to the Financial Aid Office for eligibility certification. Complete information on Parent PLUS loan deferments and repayment options is also available from the Financial Aid Office.

The Federal Student Aid Ombudsman works with student loan borrowers to informally resolve loan disputes and problems. The office of the ombudsman helps borrowers having problems with the following federal loans: direct loans (subsidized and unsubsidized Direct Stafford Loans, Direct PLUS loans, and Direct Consolidation Loans); Federal Family Education Loans (subsidized and unsubsidized Stafford Loans, FFEL PLUS loans, and FFEL Consolidation Loans); guaranteed student loans, SLS loans, and Federal Perkins Loans. If a student needs the assistance of the ombudsman in order to resolve disputes or problems, they may contact the office at U.S. Department of Education at studentaid.gov/help-center/contact; visit the website at studentaid.gov/feedback-ombudsman/disputes to submit a complaint.

Generally, no interest is charged and no repayment of principal is required while a student maintains a continuous course of study at Caltech. Repayment on Caltech loans begins nine months after graduation, leaving school, or less than half-time enrollment. Caltech loans may carry up to an annual interest rate of 5%. More specific information is provided on the promissory note and the disclosure statement provided to students prior to disbursement of the loan.

Other loans/emergency loans may be available to students regardless of their eligibility for financial aid. These loans are usually payable within the same academic year and are administered by the dean of students on a case-by-case basis. Additional information and applications may be obtained from the dean of students’ office https://deans.caltech.edu/Grants_Funding/short-term-and-emergency-resources.

The Dean’s Office also has a no-interest, 30-day emergency-loan program for students who need funds on a short time basis. The loans are ordinarily limited to $500 but there is some flexibility with regard to this limit. Additional information and applications may be obtained from the Dean’s Office deans.caltech.edu/Grants_Funding/short-term-and-emergency-resources.