PLUS Loans for Parents

Direct Parent PLUS Loans enable parents to receive funds from the U.S. Department of Education, to pay for their child's college education. A parent borrowing on behalf of a BCC student has access to Federal Parent PLUS loans from the U.S. Department of Education’s William D. Ford Direct Loan Program. Loan funds are forwarded directly to the college from the U.S. Department of Education. 

PLUS Loan eligibility requirements:

  • Student must be a dependent student who is enrolled at least half-time (6 credit hours)
  • Parent must be the biological or adoptive parent of the student for whom they are borrowing
  • Parent cannot have an adverse credit history (a credit check will be done)
  • Both the parent and student must not be in default on any federal education loans or owe an overpayment on a federal education grant.
  • Both the parent and student must be U.S. citizens or eligible noncitizens.

How to Receive a Federal Direct PLUS Loan

To take out a Direct Loan for the first time, the parent must complete a PLUS Application and master promissory note (MPN). The MPN is a legal document in which the parent promises to repay student loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

  1. Complete the FAFSA 
    The student must complete a FAFSA before borrowing any loans (or parents borrowing any loans) to maximize all aid eligibility.
    Complete the Free Application for Federal Student Aid (FAFSA) and list Burlington County College to receive the results. BCCs Federal School Code for use on the FAFSA is 007730. 
    The FAFSA can be completed online here:  http://www.fafsa.ed.gov
  2. Complete Account Creation with Department of Education
    Account creation can be completed by signing in to the Direct Loan Management Page.
    The website can be accessed here:  https://studentloans.gov
    Follow the instructions to log in where it reads Complete PLUS Request Process
    In most cases, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive to pay for the educational expenses of the same student. Unless your child's school does not allow more than one loan to be made under the same MPN, you can borrow additional Direct Loans on a single MPN for up to 10 years.

Credit Check & Endorser Alternative

When applying for a Direct PLUS Loan, the Department will check credit history. To be eligible for a PLUS Loan, the borrower must not have an adverse credit history. If your loan is denied due to adverse credit, you will receive further instructions from the Department of Education. You may choose to rehabilitate your credit standing or re-apply with an endorser (co-signer). Your student may be eligible for up to $4,000 additional unsubsidized Stafford loan funds if your PLUS loan is denied. Please contact the BCC Financial Aid Office at (609) 894-9311 extension 1575 for more information.

Loan Limits, Interest Rates, and Loan Charges

There are no set limits for Direct PLUS Loans, but the parent may not borrow more than the cost of the students education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. At the time of the MPN completion, please be sure to specify the dollar amount requested. The Financial Aid Office may certify the loan for an amount equal to OR less than the requested amount.

The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of the loan's first disbursement.

In addition to interest, parents pay a loan origination fee of 4%.  This fee helps reduce the cost of making these low-interest loans. Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds. If it is determined that a student needs the additional Unsubsidized funding, please complete the Federal Direct Loan Request Form available on the Financial Aid Forms and Links page and submit a copy of the PLUS denial to the BCC Financial Aid Office.