Federal Direct Parent Loan for Undergraduate Students (PLUS)
The Federal Direct PLUS Loan can be borrowed by a student's parent(s) to assist in the funding of a Luther College education. The following are highlights of this program:
Easy and convenient in-school processing for quick disbursement
Two-step process for new borrowers: The completion of a PLUS Loan Application and the Master Promissory Note. A parent will need their Federal Student Aid (FSA) ID to complete these steps. Once on the site, a parent will select the "Parent Borrowers" option followed by the "Request a Direct PLUS Loan" option to begin the process
One-step process for repeat borrowers (completion of a PLUS loan application only)
Online Master Promissory Note allows for added borrowing without signing a new note. Parent FSA ID will be used for signature
Loans range up to the total cost of college, including travel and personal expenses
Parent must not have an adverse credit history
Unsecured loan, not based on family income
Loans borrowed from July 1, 2022 to June 30, 2023 - fixed 7.54% interest rate
Loans borrowed from July 1, 2021 to June 30, 2022 - fixed 6.28% interest rate
Loans borrowed from July 1, 2020 to June 30, 2021 - fixed 5.30% interest rate
Loans borrowed from July 1, 2019 to June 30, 2020 - fixed 7.08% interest rate
Loans borrowed from July 1, 2018 to June 30, 2019 - fixed 7.595% interest rate
Loans borrowed from July 1, 2017 to June 30, 2018 - fixed 7.00% interest rate
Loans borrowed from July 1, 2016 to June 30, 2017 - fixed 6.31% interest rate
Origination fee of 4.228% starting October 1, 2020. This rate will be retained starting October 1, 2021.
Borrower can elect to defer this loan while the student is enrolled at least half-time through use of a Deferment Form available from their loan servicer
Loan Servicing is handled by a U.S. Department of Education contractor. Loans are submitted to a contractor for servicing once they have been disbursed to the student's account