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 2014-15 application and convenient in-school processing for quick disbursement
    • Two-step process for new borrowers: The completion of a Luther PLUS Loan Application (above) and the online Master Promissory Note. Print and complete the Luther PLUS Loan Application and mail or fax it to the Financial Aid Office. (At this time, Luther does not participate in the online application process through the StudentLoan.gov website).
    • One-step process for repeat borrowers (completion of Luther PLUS loan application only)
    • Online Master Promissory Note allows for added borrowing without signing a new note.  Parent Federal PIN 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, 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