Federal PLUS (Parent) Loans

• Available to parents (in certain circumstances stepparents) of dependent students.
   
• DWU works with the parent to determine the amount that a parent is eligible to borrow.
   
• A credit evaluation is required.
   
• Payments usually begin within 60 days after the beginning date of the repayment period (the date of the last disbursement of the loan). Check with your lender about deferment options.
   
• The parent/borrower is responsible for the interest during the life of the loan (the federal government does not pay any interest).
    
• The lender of these Federal Direct Loans is the U.S. Department of Education (the Department) rather than a bank or other financial institution.
   
• Frequently Asked Questions

Federal PLUS Loan pre-approval process
Complete the DWU PLUS Loan Credit Check Form and return it to our office:

Fax: (605) 995-2638     or    Mail:

DWU Financial Aid 1200 W. University Ave. Mitchell, SD 57301

Once you have completed this form, you will be notified if you have been approved or denied.

If you, the parent, have been approved and wish to complete the application process please follow the steps below.

Applying for the Federal PLUS Loan

***Please review all steps before beginning

• Step 1- Contact the Financial Aid Office for assistance to determine the amount you will need to borrow in the Federal PLUS loan.
   
• Step 2- If you haven’t completed the DWU PLUS Loan Credit Check Form please do so.
   
• Step 3- Please complete the PLUS Master Promissory Note online
   
• Step 3- Complete the PLUS Loan Amount form and the PLUS Excess Cash form and return them to the DWU Financial Aid Office for final processing. (If you are unable to print these forms, contact the DWU Financial Aid Office.)

If you, the parent, have been denied, the student may qualify for an additional Federal Unsubsidized Stafford loan. The financial aid office will automatically receive a notice of the PLUS loan decline and revise the student’s award letter with the additional Federal Unsubsidized Stafford loan.

Loan limits
The maximum amount borrowed (determined by the financial aid office) cannot exceed the student's cost of attendance minus other financial aid.

Interest rate and fees
The Federal Direct PLUS Loan (Parent Loan for Undergraduate Students) has a fixed interest rate of 7.9%.

Parent borrowers are charged a four percent origination fee * that is deducted from the gross loan amount prior to disbursement to DWU. The net loan proceeds are credited to the student’s account electronically approximately 7-10 days prior to the beginning to each term in equal disbursements.

*A 1.5% fee rebate is offered to all borrowers in anticipation of on-time repayment. You will be eligible to keep the rebate as long as you make your first 12 payments on-time.