Direct Loan Interest Rates for 2020-2021. Find the U.S. Department of Education's definition of adverse credit history. Because parent PLUS loans have relatively high interest rates, parents should consider whether private loans are a better option. On May 12, 2020, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 0.700%. When you compare parent PLUS loans with other loan offers, take fees into account to understand the total cost of each loan. Any remaining funds will be disbursed to your student via paper check or direct deposit to his/her personal bank account (your student can set this up through their, financial aid satisfactory academic progress requirements, Step 1: Submit Your FAFSA and Complete Your File, Step 3: Activate Your My ASU Parent Guest Access, Follow these instructions to activate your My ASU parent guest access, Parent PLUS Loan Denial Funds Request form, Step 5: Submit Important Parent Loan Documents. Processing of your loan will initiate a credit check through the U.S. Department of Education. For all questions regarding your credit check, including credit criteria, please call 800-557-7394. Federal Parent Loans Your parents can help you pay for college by taking out a Federal Direct Parent PLUS Loan. Login to your https://studentaid.gov account with your FSA ID, Choose “PLUS Credit Counseling” by clicking on “Start”, Select PLUS Credit Counseling Type: Parent of an eligible dependent undergraduate student(s), Click Start and complete the PLUS Credit Counseling for Parents. There are some situations where payment can be deferred. See if loans are right for you by learning more about different types of loans and how to apply for them. Legal guardians or grandparents (unless they are your adoptive parent) are not eligible to be considered as parents for the PLUS loan process. The U.S. Department of Education is the lender. Your parents can help you pay for college by taking out a Federal Direct Parent PLUS Loan. Your parent must be your biological or adoptive mother or father. Please enter a whole dollar amount when accepting your loan. If you are a legal guardian or grandparent, you are not eligible to apply for a Parent PLUS Loan. Please be sure to include your ASU ID and signature. To start the process of applying for a Parent PLUS Loan you and your parents must complete a, After ASU receives your FAFSA and you have completed all the items under your Priority Tasks on, If you are graduating in the fall, you must apply for graduation and notify. Generally, you must have a good credit history to qualify. The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2020 and before July 1, 2021. For information on deferment, please contact your loan servicer. You can complete PLUS Credit Counseling at studentaid.gov. But make sure you're aware of interest rates, loan fees and repayment plans. If your student is a fall/spring student, funds will be disbursed as a fall/spring loan (half in the fall and half in the spring). How Does My Parent Apply for a Parent PLUS Loan? Your credit worthiness is determined by the U.S. Department of Education. The U.S. Department of Education will not share or send your parent's credit information to ASU. Grant your parent guest access to accept a Parent PLUS loan by adding a guest on My ASU in the My ASU Parent Guest Access Permissions section. You do not have to accept any of the PLUS loan and we encourage you to apply for only what you feel is necessary given your family’s financial situation. A parent who qualifies may receive a Parent PLUS Loan for the education costs of a dependent undergraduate student who meets the eligible student definition. Instantly Compare Private Student Loan Lenders. 4. It's important to remember that if you able to secure a deferment on your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. There is a 4.236% loan origination fee on all Parent PLUS Loans. If you are unable to find a creditworthy endorser or appeal the denial of your credit decision, your student may request an additional Federal Direct Unsubsidized Loan. If you are unable to find a credit worthy endorser or appeal the denial of your credit decision, your student may request an additional Federal Direct Unsubsidized Loan. The U.S. Department of Education is the lender. For information on deferment, please contact your loan servicer. You can find additional Parent PLUS Loan information at studentaid.gov. There are three available options to consider when a parent is credit denied a Parent PLUS Loan. Eligibility Requirements There are three options available to consider when a parent is credit denied a Parent PLUS Loan. Parents whose Parent PLUS loans are credit declined may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser or may appeal the declined credit decision by documenting extenuating circumstances.