Eligibility

The Federal PLUS Loan is a non- need-based, federally guaranteed education loan for parents of all income levels.  Eligibility is limited to those parents without an adverse credit history, as determined by the lender.  Parents may borrow up to the total cost of education minus financial aid (including student loans.) 

Interest Rate/Loan Fees 

The interest rate is fixed at 8.5 percent. An origination fee of up to 4 percent of the loan principal will be deducted proportionally from each loan disbursement.

PLUS Application Process

Bates participates in the Federal Family Education Loan Program (FFELP), which means that parents borrow from a FFELP- participating lending institution.  The lender performs the required credit check and borrowers sign a promissory note with their chosen lender.  Parents typically apply for PLUS Loans during the summer.  To apply for a PLUS Loan, your parent must complete the following steps:

• Complete a Federal PLUS Loan Certification Request.  Parents may submit a request (via their student) through the Garnet Gateway by clicking on Financial Aid Online Forms under the Student Financial Services tab and choosing the PLUS Loan option, or they can print out a PDF of the form to complete and return to the Student Financial Services Office.
• Parents borrowing for the first-time on behalf of a student must sign an online Master Promissory Note (MPN) with their chosen lender.

Instructions for Completing a Federal PLUS Loan Master Promissory Note (MPN)

Parents applying for a Federal PLUS Loan on behalf of a student for the first time MUST complete a Master Promissory Note (MPN) online with their chosen lender.  A list of Bates suggested lenders is shown below.  Parents of Bates students are under no obligation to borrow from one of the lenders suggested by the College, and we do not assign lenders.  Bates will certify PLUS Loans with any lender offering loans to students attending Bates.

Bates Suggested Lenders (PLUS)

Nelnet

lender code: 831300

phone: 877-804-3603

URL: https://secure.nelnet.com/LoanApplication/

 

Citizen's Bank

lender code: 826861

phone: 800-708-6684

URL: https://secure.nelnet.com/LoanApplication/cobrandlanding.aspx?LID=826861&APP=PLUS 

FAME (Finance Authority of Maine)

lender code: 834105

phone: 800-228-3734

URL: https://loans.edfinancial.com/Loans/GenericBrand/L834105/Plus/Default.aspx

Disbursement 

Loan proceeds are disbursed in two equal installments, once each semester.

PLUS Loan Repayment 

Repayment of PLUS Loans begins 60 days after the funds are fully disbursed, and the repayment term is up to ten years (there is a minimum payment of $50 per month).  Parents have the option of deferring payments on the PLUS Loan while the undergraduate student on whose behalf the loan was borrowed is enrolled, and during the six-month grace period after the student graduates or ceases to be a student.  Interest continues to accrue during this deferment period, however.  Alternate repayment terms such as extended repayment, graduated repayment, and income-contingent repayment are also available.  Extending repayment can make monthly payments more manageable, but may result in more interest paid over time.  The FinAid web site offers a Loan Payment Calculator that students and parents may find helpful.