Federal Parent (PLUS) Loans
Parents of dependent undergraduate students can borrow a PLUS Loan to pay for educational expenses at PPCC as long as their student is enrolled at least half-time (6 credits) in a degree program and meets and maintains the College's Satisfactory Academic Progress Standards. Pikes Peak Community College participates i the Direct Lending Program, in which parents borrow their federal loan funds only from the U.S. Department of Education rather than private lenders.
As a parent, you may borrow up to the total Estimated Cost of Attendance minue all other sources of financial aid your student receives. The PLUS Loan has a fixed interest rate of 7.9 percent, which is charged on the loan from the time the loan funds are disbursed until it is paid in full.
For general information about the Federal Direct Parent (PLUS) Loan, please contact the PPCC Enrollment Services Center at 719-502-3000. We are open from 8:00 a.m. - 6:00 p.m. Monday and Tuesday; 8:00 - 5:00 p.m. Wednesday - Friday, MST.
- Sign the Direct Loans Master Promissory Note (MPN) - using your Federal Student Aid PIN - online by choosing the Complete New MPN for Parent PLUS Loans option.
- Complete the 2008-2009 Free Application for Federal Student Aid (FAFSA on the Web at www.fafsa.ed.gov.
- Complete the 2008-2009 Federal Direct PLUS Loan Request Form and submit back to the Enrollment Services office in person, by mail or by fax (719-502-2074).
The Direct Loan MPN will be valid for up to ten years. Once you sign it, you will not need to do so again. Remember, if you signed a Parent PLUS MPN with a lender in the past, it is no longer valid so please be sure to sign a Direct Loan MPN if you have not already done so.
Are you having technical difficulty? If you are experiencing technical difficulty signing the MPN online at www.dlenote.ed.gov, please contact the Department of Education's customer service center for borrower's toll-free number at 800-557-7394.
How much should I borrow?
The yearly limit on a PLUS Loan is equal to your student's cost of attendance (tuition, fees, books, housing, transportation and supplies) minus other financial aid your student receives. We encourage you to review your student's tuition bill prior to applying for a PLUS Loan to determine the loan amount you will need to borrow.
By law, the total origination fee is 4.0%; however, Direct Loans currently offer an up-front rebate of 1.5%. Therefore the actual amount deducted from the gross amount of the loan borrowed is 2.5%. Parents need to take this net 2.5% fee into consideration when determining the gross amount to borrow. Please not, if you fail to make 12 on-time monthly payments, the up-front rebate will be removed and the Principle Balance Owed will be recalculated with the original 4.0% origination fee.
How do I know if my loan was approved?
After you complete the PLUS Request Form, the U.S. Department of Education will mail you the results of your credit check and transmit this information electronically to PPCC.
If you pass the credit check and have signed the Direct Loan MPN, we will include the PLUS Loan on the Award Letter and it will also appear on the student's bill as a credit.