Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan can be borrowed by a student's parent(s) to assist in the funding of a Luther College education. The following are highlights of this program:

  • Easy and convenient in-school processing for quick disbursement
    • Two-step process for new borrowers: The completion of a PLUS Loan Application and the Master Promissory Note. Beginning in  the 2015-16 academic year, both of these processes can be completed online.  A parent will need their Federal Student Aid (FSA) ID to complete these steps.  Once on the site, a parent will select the "Parent Borrowers" option followed by the "Request a Direct PLUS Loan" option to begin the process
    • For the 2015 Summer Sessions, please contact the Financial Aid Office for a paper application
    • One-step process for repeat borrowers (completion of a PLUS loan application only)
    • Online Master Promissory Note allows for added borrowing without signing a new note.  Parent FSA ID will be used for signature
  • Loans range up to the total cost of college, including travel and personal expenses
  • Parent must not have an adverse credit history
  • Unsecured loan, not based on family income
  • Loans borrowed from July 1, 2015 to June 30, 2016 - fixed 6.84% interest rate
  • Loans borrowed from July 1, 2014 to June 30, 2015 - fixed 7.21% interest rate
  • Loans borrowed from July 1, 2013 to June 30, 2014 - fixed 6.41% interest rate
  • Loans borrowed from July 1, 2006 to June 30, 2013 - fixed 7.9% interest rate (Loans borrowed prior to July 2006 - variable interest rate with a 9% cap; set annually)
  • Origination fee of 4.292% starting October 1, 2014
  • Borrower can elect to defer this loan while the student is enrolled at least half-time through use of a Deferment Form available from their loan servicer
  • Loan Servicing is handled by a U.S. Department of Education contractor. Loans are submitted to a contractor for servicing once they have been disbursed to the student's account