Federal Direct Parent PLUS Loan
Hampshire College participates in the Federal Direct Loan Program (FDLP). The U.S. Department of Education, through this program, offers parents of dependent children attending an undergraduate school a loan to help pay educational expenses. This federal parent loan is the Direct Parent Loan for Undergraduate Students, or Direct PLUS loan.
The Direct PLUS loan has a fixed interest rate with an optional one quarter percent (0.25%) interest rate reduction when payments are made automatically from a bank account. Your PLUS loan would be managed by a loan servicer contracted to administer these loans. Your loan will not be sold or transferred to another company.
Direct PLUS loan applications are processed by the financial aid office at Hampshire College. We receive the application from the U.S. Department of Education, monitor the signing of the promissory note, record the loan onto the student's records and we disburse the funds onto the student's college bill.
To help you through the Direct PLUS application process, follow these easy steps:
STEP 1: Become familiar with the features of the Direct PLUS loan. Learn about the interest rate, fee, repayment terms, postponement options, forgiveness options, eligibility requirements, and other general features.
STEP 2: Review the general borrowing tips to give you an overview of the application process.
STEP 3: If you have any questions along the way, please contact our loan counselor. Whether you need assistance determining the amount to borrow, or to decide whether a Direct PLUS loan is right for you, please call upon our loan counselor for assistance.
STEP 4: Apply for the Direct PLUS loan. Once you have determined that the Direct PLUS loan is right for you, and you have calculated the amount you need to borrow, you are ready to apply for a Direct PLUS loan. You will learn if the loan is approved or denied while you are still on the application website. If denied, you will be given some options to help get it approved. We will be notified of the results directly from the U.S. Department of Education.
STEP 5: Be sure that you have signed the Master Promissory Note (MPN) for your Direct PLUS loan. Repeat borrowers with an MPN already on file need not complete another one.
Good job! You have completed the Direct PLUS loan application process.