Parent PLUS Loan
College of the Canyons also participates in the PLUS loan program funded by the federal government. Parent PLUS loans were created by the federal government to help parents or stepparents pay for their dependent student’s college costs, including tuition, fees, books, housing, food and reasonable transportation expenses. PLUS loans are not based on a family’s income or assets and parents can borrow up to the total cost of education, minus any financial aid the student will receive. The student must be enrolled at least half time and be making satisfactory academic progress (Eligibility & Academic Standards
The parent who applies for the PLUS loan must be a U.S. citizen or an eligible non-citizen, have a valid Social Security Number, not be in default on a federal loan, not be liable for a grant or Federal Perkins Loan overpayment and not have an adverse credit history.
The interest rate for a PLUS loan disbursed on or after July 1, 2014 and prior to July 1, 2015 is fixed at 7.21%. The interest rate for a PLUS loan disbursed on or after July 1, 2015 and prior to July 1, 2016 is fixed at 6.84%.
The federal government charges a 4.292% origination fee for loans disbursed after October 1, 2014. The federal government charges a 4.272% origination fee for loans disbursed after October 1, 2015. This fee is automatically deducted from each disbursement of the PLUS loan.
Interest begins to accrue immediately and repayment starts within 60 days of the loan’s last disbursement. The borrower will have up to 10 years to repay a PLUS loan. The borrower may choose to postpone interest payments, but any accrued interest will be added to the original loan amount (capitalization).
The student must first complete a FAFSA in order for the parent(s) to be considered for a PLUS loan.
How To Apply for a Parent PLUS Loan for 2014-2015
STEP 1: Complete Parent PLUS Loan Application ONLINE
First, complete a MANDATORY Parent PLUS Loan Application ONLINE. This is required each academic year you request a Parent PLUS Loan.
STEP 2: Submit a Parent PLUS Loan Activation Request Form
Next, complete the Parent PLUS Loan Activation Request Form. Submit completed Parent PLUS Loan Activation Request Forms to the Financial Aid Office at College of the Canyons located in Seco Hall 110 or by fax (661)362-5617. Mailing Address: College of the Canyons Financial Aid Office, 26455 Rockwell Canyon Road, Santa Clarita, CA 91355.
STEP 3: Complete Master Promissory Note ONLINE
Wait 5 business days AFTER finishing Steps 1 and 2 above.
Then, complete the Master Promissory Note (MPN) online. You will be signing your MPN online with your FAFSA Personal Identification Number (PIN).