Federal Parent Loans

Federal Direct Parent PLUS Loan

The Federal Direct PLUS Loan (Parent) is a federally funded loan for parents.  Parents may borrow the difference between the cost of attendance at Illinois College and all the financial aid the student has received.  To apply for a Parent PLUS Loan, the student is required to complete the Free Application for Federal Student Aid (FAFSA). 
The federal government will run a credit check to determine if you, the parent, are eligible to borrow the Parent PLUS loan. One or both parents are eligible to apply for a loan in their name.  Grandparents, aunts, uncles, and/or other legal guardians are not eligible to apply for a Parent PLUS loan unless you have legally adopted the student.
The interest rate for the Parent PLUS Loan is currently 9.08% (fixed; 7/1/24 - 6/30/25).  Before the loan is disbursed, a 4.228% origination fee is withheld.  When requesting the loan to cover the student's balance at Illinois College, it is important to remember that the origination fee will be subtracted from the amount you request.
While the Parent PLUS Loan is used to cover the educational expenses of your student, it is important to remember the loan is in your (the parent's) name. You are the one responsible for repaying the loan.  It cannot be passed on to your student.  If you request a Parent PLUS Loan for the full academic year, repayment for the loan begins in March. If you request the loan for one semester, repayment begins 60 days after the start of that semester.  You will be contacted by the servicer of your loan regarding repayment and deferment options.

Applying for a Parent PLUS Loan

  1. Apply for a Parent PLUS Loan
    Before applying for a Parent PLUS Loan, we encourage you (the parent) to have a copy of your student's financial aid award letter from Illinois College handy.  

    Step one: Calculate your out of pocket expense
    To determine how much you may need to borrow, subtract the amount of financial aid your student has been awarded from the total cost of attendance.
     $49,306 - (your student's financial aid) = Estimated out of pocket expense
    Since there is an origination fee withheld, divide your estimated out of pocket expense by 0.95772 to determine how much you need to request to cover the balance.

  2. Retrieve or create your FSA ID
    If you are the parent who electronically signed your student's FAFSA for the 2024-2025 school year, you already created an FSA Username and password.  
    If you have not created an ID or if you have forgotten yours, visit fsaid.ed.gov to apply for your FSA ID.

  3. Log into studentaid.gov to apply for the loan
    You, the parent, should sign in to studentaid.gov using your FSA ID.  (Do not use your student's FSA ID.)  Once logged in, select "Apply for a Direct PLUS Loan" and then select "Parent PLUS".
    When you complete the Parent PLUS loan application, you will be asked to select the loan period start dates. For the 2024-2025 academic school year, the loan period is August 2024 - May 2025.  You may request the loan for one semester, if you choose. In this situation, select August 2024 - December 2024 for fall term only, or January 2025 - May 2025 for spring term only.
    Within the application, you will have the choice to indicate the loan amount you wish to borrow or you can request the maximum amount and we will determine what amount you are eligible to borrow based on the cost of attendance and your student's financial aid package.

    We encourage you to be a responsible borrower and not borrow more than you need.  At Illinois College, you can use a variety of payment methods to cover your student's balance.  You are able to make lump sum payments at the beginning of the semester, monthly payments through the Payment Portal, and through the Direct PLUS Loan.
    If you were approved for the Parent PLUS Loan, complete the Master Promissory Note (MPN)
    If you were approved for the Parent PLUS Loan and wish to borrow the loan to cover your student's educational expenses at Illinois College, you must complete the Parent PLUS Loan MPN.
    You will complete the electronic MPN by logging into studentaid.gov.  Click on “Complete your loan agreement (Master Promissory Note)” and then select “PLUS MPN for Parents”.  We will be notified when you have submitted the MPN. 
    If you receive a negative credit decision, you will be presented with the following options:
  • Appeal the decision - You should consider this option if you think there is an error on your credit report.
  • Apply with an endorser - Additional information will be presented to you by the Application Services Department.
  • Additional Unsubsidized loan for the student - If the parent is not approved for a Parent PLUS loan, the student is eligible to borrow additional unsubsidized loan in his or her name.  First year and sophomore students are eligible to borrow an additional $4,000 each year; junior and senior students are eligible to borrow an additional $5,000 each year.
  • Undecided - No additional loans will be awarded to the student.