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Parent Plus Loan

Parent Plus Loan - The Federal Parent Plus Loan allows parents of dependent undergraduates to borrow up to the entire cost of attendance, minus any other financial aid received. This loan is not based on financial need and is awarded regardless of income level. However, a good credit history is required. Repayment on this loan begins within 60 days after the loan has been fully dispersed. Parents may also opt to postpone making payments until six months after their son or daughter graduates from college or drops below half time attendance. For Parent Plus loans disbursed on or after 7/1/2008 the interest rate will be a fixed interest rate of 8.5%.

If you would like to apply please complete the following steps:
1. Open your browser to TG Loans by Web located at lbw.tgslc.org.
You will be directed to the myTG portal to log in. If this is your first visit to myTG , you will be required to register as a new user. After registering, you will then log in to myTG and be directed to TG Loans by Web.

2. Select I am a parent borrower and enter borrower SSN & Date of Birth, then click Login.

3. Click Complete a loan award.

4. Enter the student’s SSN and Date of Birth, click Continue.

5. Under Option 2 (Create Loan Request). Choose Tyler Junior College from the drop down menu then click Create Loan Request.

6. Complete the 4 steps listed under Steps to Complete Loan Award - and then click Submit:
     1. Personal Information
     2. References
     3. Lender Selection
     4. Loan Award Information

7. Please verify your information and Send Request to submit.

8. Parent should e-sign their Master Promissory Note using the FAFSA PIN.

9. Once we receive notification of your PLUS loan application we will certify your loan amount and request funds.

10. Go to TJC Finaid Forms and download and print the Parent PLUS Loan Authorization and submit that to the Financial Aid Office.

If a parent does not qualify for this loan the student becomes eligible to receive up to $4,000 in additional Unsubsidized Loan funds. The student does not have to apply for this additional loan. Upon receipt of the Parent Plus Loan denial the student will automatically be awarded the additional funds. Once awarded, the student will be required to go to Apache Access to accept their loan. Also, the student may be required to return to Loans by Web to complete an MPN.

What is a Parent PLUS Loan?
A Parent PLUS loan is a low-interest loan provided to parents through the Federal Family Education Loan Program. This loan enables parents to pay the education expenses for a dependent student enrolled at least half-time in a college or career school.

Who pays back the loan?
The parent.

How does my child’s school get the loan money?
Parent PLUS loan funds are sent directly to your child’s school. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. You will need to submit the Parent PLUS Loan Authorization Form to determine how the refund, if any, will be issued.

What should I do before I apply?
Several events must happen before you should apply for a Parent PLUS loan. You must:

Complete the Free Application for Federal Student Aid (FAFSA). This is required for your student to be considered for federal and most other types of student aid awarded by state agencies and colleges. If you do not submit a FAFSA, you will NOT be eligible to receive student aid.
Receive a Student Aid Report (SAR) which tells you what federal funding your student can get.
Receive student aid award letters from schools that have accepted your student.
Review and compare your student’s awards.
Determine whether the student aid award meets the student’s education costs for their school. If it does not or you need funding to meet your Expected Family Contribution (indicated in the SAR), then it is time to apply.

What is the Parent PLUS Loan Master Promissory Note (MPN)?
An MPN is a “promise to pay” document under which you may receive Parent PLUS loans for either a single or multiple enrollment periods.
You may need to sign the MPN only once, but you must apply for additional Parent PLUS loan funds each academic year, as needed.

Am I eligible?
Parent
To get a PLUS loan, you must:

Be the student’s natural parent, adoptive parent, or in some cases, stepparent
Be a U.S. citizen or eligible non-citizen
Have no education loans in default or owe educational grant refunds
Be creditworthy

Student
For your parent to get a PLUS loan, you must:

Complete the Free Application for Federal Student Aid (FAFSA)
Be a dependent student. Parents of independent students are not eligible.
Be enrolled in a school that participates in the Federal Family Education Loan Program
Be enrolled at least half-time while working toward a degree or certificate
Have no education loans in default or owe educational grant refunds
Register with the Selective Service, if you are a male 18-25 years old

What is the interest rate?

The current fixed rate is 8.5% for loans paid out on/after July 1, 2006.
The rate is adjusted each July 1st and is based on the 90-day Treasury bill plus a margin determined by your lender.
Select lenders offer additional rate reductions.
The rate will never exceed 9.0%.

How much can I borrow?
You may borrow up to the full cost of the student's education less other aid received. You can use the loan funds for all associated costs - including tuition, room and board, books, computer, etc.
Loan fees total 4% of the borrowed amount.

Federal default fee will not exceed 1%
Federal origination fee: 3%

Can I consolidate?
Yes. Parent PLUS loans in repayment are eligible for loan consolidation.
Is this the right loan for me?
A Parent PLUS loan is the best option for parents who want to pay for their student’s education costs.

Low, fixed interest rate of 8.5%
Borrow the difference between your student’s cost of attendance and financial aid award
No income requirements
Payments on interest can be tax deductible
No penalties for paying your loan off early
Flexible repayment options

What are my repayment options?
The standard repayment period is 10 years. Loans become due for repayment 60 days after the school receives the loan funds. Postponement of repayment may be available upon request while your dependent student is enrolled at least half-time.

What if I pay my loan off early?
You can pay your loan off early without penalty. This is known as prepayment.

How much can my parents borrow?
The yearly limit on PLUS Loans is equal to the cost of attendance* minus any other financial aid you receive. For example, if your cost of attendance* is $6,000 and you receive $4,000 in other financial aid, your parents could borrow up to, but no more than, $2,000.

Do they get the money or do I?
Your parents' lender will send the loan funds to your school. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, your parents will receive the amount as a check or in cash, unless they authorize the amount to be released to you or to be put into your school account. Any remaining loan funds must be used for your education expenses.

Can my parents cancel the loan if they change their minds, even if they've signed the promissory note (MPN) agreeing to the loan's terms?
Yes. Your school must notify your parents in writing whenever it credits your account with PLUS Loan funds. This notification must be sent to your parents no earlier than 30 days before, and no later than 30 days after, the school credits your account. Your parents may cancel all or a portion of their loan if they inform your school within 14 days after the date your school sends this notice, or by the first day of the payment period, whichever is later. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.