The Federal Direct PLUS (Parent Loan for Undergraduate Students) Loan Program provides loans to parents of dependent undergraduate students attending post-secondary schools. The parent is the borrower of the PLUS Loan and is responsible for paying the interest and principal on the loan.
Parents may borrow up to the cost of attendance minus other aid the dependent student is receiving.
Parents have an option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the student ceases to be enrolled at least half-time.
At the beginning of each semester, 1/2 of the loan funds will be electronically transferred to DCTC. The funds will be applied toward educational charges for your son/daughter.
Funds in excess of college charges will be disbursed to students through BankMobile. Please make sure you have selected your refund preference with BankMobile. If this is not acceptable, the parent borrower must contact the DCTC Tuition Office at 651-423-8246 or 651-423-8248.
PLUS Loan applicants are required to complete a Federal Direct PLUS Loan Master Promissory Note (MPN). This note incorporates new functionality that will allow the parent to borrow for multiple years without having to complete a separate MPN for each requested loan amount. The Federal Direct PLUS MPN is valid for up to ten years, provided that the parent borrows within one year from the date the note was signed. If the parent has more than one student, the parent will need to complete a separate MPN for each student.
What if the parent is not approved for the PLUS loan?
Dependent students who parents are denied the PLUS Loan may be eligible to receive additional funds from the Unsubsidized Federal Stafford Loan Program. Parents must complete the Federal Direct PLUS Loan Authorization and sign in the box giving DCTC authorization to perform a credit check. If the parent is denied, additional Unsubsidized Stafford Loan eligibility will be determined and the student will receive a revised award letter. Students wishing to accept the new loan must complete a Federal Direct Stafford Loan Application accessed through the DCTC Web site.