PLUS (Parent Loan) 

A Federal PLUS loan is a loan a parent may take out to help pay for a student’s educational expenses.

Lenders conduct credit checks on the parent who applies for a PLUS loan. If you are approved for a PLUS loan, the lender will send you a disclosure statement indicating the amount of the loan, the expected dates that the funds will be sent to VU, and the expected date for your starting to repay the loan.

If you are not approved for a PLUS loan by the lender, after we receive the denial notice from the lender, we can certify an additional unsubsidized loan for your student.

Lenders are permitted to charge a 3% loan origination fee on PLUS loans, so the amount you borrow will be higher than the amount that gets credited to your student’s account.

Repayment of a PLUS loan is different than repayment of a student loan. The monthly repayment period for a PLUS loan begins 60 days after full disbursement of the loan. For those with an academic year loan period, full disbursement happens after the start of the second semester. The minimum monthly payment is $50.00 per month.

How to Apply for or Decline a Parent Loan

If you are eligible for a PLUS loan, the amount that you may borrow is indicated on your student’s financial aid award notification letter. If you do not want to borrow any of this money, go to the  "Accept or Decline Aid" button and follow directions there. Even if you decline the loan now, if your situation changes, you can apply for it later.

If you do want to borrow some or all of the PLUS loan for which you are eligible, one of you must complete the Federal PLUS Loan Application and return it to us in the financial aid office so that we can provide the correct information to the lender. The Federal PLUS Loan Application has space for you to indicate how much of what you are eligible for you want to borrow. Be aware that lenders ordinarily charge an origination fee of 3% of the amount borrowed. For example, if you borrow $1,000, the amount that will go toward your student’s account is $970.

If you are approved for the loan, the lender will send you a master promissory note that you will complete and return to the lender.

If you are not approved for the loan, the lender will inform you and us. If the lender denies your request for a loan, we will offer your student additional funds in the form of an unsubsidized loan.

Loans are always sent to us in two equal installments. If your student is at Vincennes University for the whole school year, half the loan will be sent the first semester and half will be sent the second
semester.

If you have questions,
please call us at 812-888-4361 or
e-mail us at fa@vinu.edu.