Santa Clara University

The financial needs of our students' families are as different as the families themselves. For most students, the need-based assistance offered by Santa Clara University is sufficient to pay for college when combined with the family's calculated contribution. However, the reality for many families is that they are not prepared to contribute the calculated family contribution. Many parents look for low-interest financing options, such as the Federal PLUS Loan, to help reduce monthly expenses and extend the payment of the year's costs.

Santa Clara University participates in the Federal Family Education Loan Programs (FFELP) PLUS Loan program. The Federal Parent Loan for Undergraduate Students (Federal PLUS Loan) offers parents an excellent low-interest loan alternative to paying for college costs during the academic year. With a Federal PLUS Loan, a family can borrow up to the difference between the cost of attendance and the amount of any financial aid the student is eligible to receive.

The Federal PLUS Loan was created by the federal government to help parents or stepparents with good credit histories to pay for their dependent student’s college costs. You must be a dependent, undergraduate student enrolled at least half time. Federal PLUS loans are funded by banks, savings and loans and credit unions under the Federal Family Education Loan Program. Interested parents should select the Guide to Choosing a Lender as well as the Federal PLUS Loan Lender Denial Rate Chart to learn more about how to choose your lender.

Follow the steps to apply for the Federal PLUS Loan:

1. Use the Guide to Choosing a Lender as well as the Federal PLUS Loan Lender Denial Rate Chart, to select a Federal PLUS Loan lender.*
2. Apply for a Federal PLUS Loan, by visiting the lender's Web site.
3. Complete Federal PLUS Loan application and submit a Master Promissory Note (MPN). Parents will need to check with their lender to determine if a new MPN is required each year when applying for the Federal PLUS Loan.
4. My parent(s) has applied for a Federal PLUS Loan but has been denied. What are our options?

* During this volatile financial time period be mindful in choosing your lender.  You will want to select a reputable lender who will be lending throughout the year.

PLUS Loan Benefits

• low-interest rate
• lower monthly payments
• an extended payment period for educational costs

Who May Apply
To borrow a Federal PLUS Loan for a student, the parent must be the student's biological or adoptive mother or father. A stepparent whose assets and income are taken into account when determining the student’s Expected Family Contribution is also eligible to borrow a Federal PLUS loan.

Interest Rates and Terms
Interest is fixed at 8.5%. There is no grace period for a Federal PLUS Loan. Interest begins to accrue immediately after the first disbursement of the Federal PLUS Loan, and repayment of both principal and interest begins within 60 days after the final disbursement of the loan.

Maximum Amount
You may borrow up to the cost of attendance minus other financial aid the student has been awarded.

Enrollment Requirements
A student must be continuously enrolled for at least six units (half time enrollment) each term as an undergraduate to receive the loan. If the student drops below half-time at any time during the loan period, he/she will not be eligible for the loan proceeds.

Disbursement of Loan Proceeds
Upon approval, your lender will send the Federal PLUS Loans funds directly to Santa Clara University through the Electronic Funds Transfer (EFT) process. The funds will be credited to the student’s account. All loans are issued in one disbursement per quarter. The second disbursement will arrive at the beginning of the winter quarter for an academic year loan and the final disbursement will arrive at the beginning of the spring quarter. If you choose a lender that does not use the Electronic Funds Transfer (EFT) Process, the Financial Aid Office will receive a paper check from the lender. Our office will mail the check to the parent (borrower) for proper endorsement. The check must be mailed back to the school to be properly credited to the student's account. This manual process could cause significant delays in the loan process.