Federal PLUS loans are available to all parents of dependent undergraduate students regardless of income. Qualification is based solely on good credit. 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. Your child must be a dependent student who is enrolled at least half time at Walden. There are no debt-to-income ratio guidelines or employment verification requirements. Parents may borrow up to the total education cost for the year, minus any other financial aid that the student is receiving. The total education cost can include tuition and fees, room and board, books and supplies, transportation, and living allowance.
The loan fee is retained by the federal government to reduce the cost of supporting these low interest loans.
The U.S. Department of Education is responsible for all Parent PLUS loan credit decisions. Parent PLUS loan borrowers are required to pass a simplified credit check, meaning that the U.S. Department of Education is not looking for a certain credit score or for an extensive credit history, but simply the absence of an adverse credit history. Students can view the status of their parents’ application by logging in to StudentLoans.gov or by calling Federal Direct Loans at 1-800-557-7394. Effective March 29th, 2015 credit decisions remain valid for 180 days.
The following may cause a Parent PLUS Loan to be denied. Please refer to StudentLoans.gov for more information.
Parents will receive an immediate approval or denial of their application upon electronic completion as well as the loan reference number, which is needed if the parent wishes to pursue an endorser. The Office of Financial Aid will be notified electronically of the credit decision only if the application was completed electronically. Applications are not approved or denied based on the dollar amount requested; therefore, parents should not complete additional applications once a denial is rendered by the U.S. Department of Education. Once the loan application is denied, the parent must either find an endorser or appeal the credit decision by documenting extenuating circumstances.
The Office of Financial Aid has no control over or influence on the credit decision rendered by the U.S. Department of Education. All correspondence regarding credit appeals and endorsers must be sent to the U.S. Department of Education.
Approval for the Parent PLUS loan is loan specific. It is possible to be approved for one loan and denied at a later date for a new loan. Denied parents still have two options to obtain the Parent PLUS Loan:
The steps below are to be taken by the parent endorser. These steps must be completed electronically and in a single session; paper addenda will not be accepted.
Usually done in three equal amounts at the beginning of each semester/quarter and sent directly to the university. A federal loan fee may be deducted from the proceeds.
Federal Direct Parent PLUS loan repayment normally begins within 60 calendar days after the loan has been fully disbursed. In certain circumstances, parents may elect to repay the loan on a graduated repayment schedule, making interest-only payments (the minimum is based on the term of the loan and must be at least $50 per month) for a portion of the repayment term.
Do you have questions about financial aid? If you haven’t yet applied to Walden, please contact an enrollment advisor at 855-646-5286 in the United States. If you are a current student, please contact a financial aid advisor at email@example.com or call 1-800-WALDENU (1-800-925-3368).