If your federal and state grants along with your Direct student loan do not fully cover your expenses, there are other loan options. Parents may apply for a Federal PLUS loan, or either the parent or student may apply for an Alternative loan.
Federal PLUS loans are low-interest loans for parents of dependent students. These loans allow parents to borrow up to the student’s full cost of attendance. The Federal PLUS loan is not asset-based; approval is based on creditworthiness. If parents do not qualify for a PLUS loan, the student may be able to borrow additional funds through an unsubsidized Direct loan or an Alternative loan.
Parents of a dependent student may request the PLUS loan through the Office of Financial Aid or download the form here. It is the parents’ responsibility to repay this loan. Note: First time parent borrowers must complete a Master Promissory Note (MPN).
Alternative loans are private loans offered by banks and credit unions. These loans are credit-based and often have variable interest rates. Applicants with a limited credit history may be required to have a co-signer for this type of loan. If you have any questions on what option is best for you and your family, contact the Office of Financial Aid. Remember: Always apply for federal and state financial aid first.