- Financial Information
- Financial Aid
- How to Apply
- Aid Programs Offered
- Financial Aid Calendar
- Financial Aid Counselors
- Financial Aid Forms
- Financial Aid Status
- Questions and Answers
- Rights and Responsibilities
- Satisfactory Academic Progress for Financial Aid Recipients
The PLUS loan is a credit-based federal loan for the parent/stepparent of a dependent student.
Plus Loan Eligibility
- Complete the FAFSA
- Complete the ADU Aid Application
- Dependent student must be enrolled at least half-time at ADU
- Dependent student must be classified as degree seeking at ADU in an eligible program
- Dependent student must maintain Satisfactory Academic Progress (SAP)
- Be a U.S. Citizen or eligible non-citizen
- Complete the Stafford/PLUS Loan Request form
- Request a credit check which is valid for only 90 days. Do not apply more than 90 days before the beginning of the loan period to avoid credit expiration.
- Complete the Master Promissory Note (MPN)
- A federal PIN is required to complete the MPN. If you do not have a federal PIN, you can apply for one at www.pin.ed.gov
The loan limit for each award year is the annual cost of attendance minus other financial aid. If your request is too high, the amount will be reduced to fit within the cost of attendance.
The interest rate for the Direct PLUS loan is 7.9%.
Direct PLUS loans have a 4% origination fee. There’s an up-front rebate of 1.5%, so the net disbursement is 97.5% of the gross loan amount. The borrower must make the first 12 payments on time to keep the rebate.
The first payment is due within 60 days after each loan is fully disbursed. If the loan is for fall/spring/summer the first payment would be due in June. Interest accrues when the first disbursement is made. Direct PLUS loans that are first disbursed on or after July 1, 2008, the 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. The parent may defer repayment while the dependent student is enrolled at least half-time and during the 6-month grace period after the dependent student ceases to be enrolled at least half-time.
Parent borrowers must call Direct Loan Servicing Center at 800-848-0979 to request a deferment based on the dependent student’s enrollment status.
Disbursement of Loan
- Disbursement of financial aid will begin approximately 1 - 2 weeks following Drop/Add and continue each week throughout the trimester students complete and meet all eligibility requirements.
- Once the disbursements are posted, the dependent student may view them at my.adu.edu. Charges will be deducted at that time.
- Any remaining amount of financial aid will be processed as a refund.
- If charges remain on your account after disbursements or if subsequent charges are made to your student account, it is your responsibility to pay for them.
Options if PLUS is not approved
If the parent is denied based on credit, there are some options for the family.
- Parent may be approved with an endorser (co-signer)
- Student may complete the estimated budget worksheet and call Financial Services to make an appointment to determine the amount of additional Unsubsidized Stafford Loan eligibility.
- Private loans may be available. (See Private Loan section for further details)
Loan consolidation is a new loan that is created by combining the repayment of two or more loans to reduce the amount of monthly payments and extend the loan repayment term. The total cost of the loan can be higher with consolidation because the repayment period is much longer than the standard period. Also, any benefits associated with the loans are lost when those loans are consolidated.