On July 1, 2010 Louisiana Tech University began participating *exclusively* in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education.The Family Federal Education Loan Program, which permitted private lenders to originate these loans, was eliminated effective June 30, 2010.
Federal Direct PLUS Loan Information:
Federal Direct PLUS Loans enable parents with good credit histories to borrow funds to pay the education expenses of each child who is a dependent undergraduate student. Students pursuing a graduate or professional degree with good credit histories can also borrow from the Direct PLUS Loan program. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. The interest rate for Federal Direct PLUS loans first disbursed on or after July 1, 2006, is a fixed 7.90%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. You pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive.
Parent eligibility for a Direct PLUS Loan
- You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application.
- You cannot have an adverse credit history (a credit check will be done).
- Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.
- Parents and their dependent child must:
- be U.S. citizens or eligible non-citizens
- not be in default on any federal education loans
- not owe an overpayment on a federal education grant
- meet other general eligibility requirements for the Federal Student Aid programs.
- Applying for a PLUS Loan and the Master Promissory Note (MPN)
- Credit check and endorser alternative
- Loan limits, interest rate, and loan charges
- How a loan is disbursed (paid out)
- Automated payments (electronic debit)
- Trouble making payments
- Consequences of default