The PLUS loan enables you to borrow to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half time. It is available through the Federal Direct Loan Program.

Who receives the PLUS loan funds?

Your PLUS loan funds will be delivered directly to Ball State University. One-half of the net loan proceeds will be applied to the student's first semester charges, while the second half will be applied to the second semester charges. For a one semester only PLUS loan, there will be one disbursement. If there are excess funds remaining after each disbursement, a refund check will be sent to the student or parent (depending upon the refund option you select).

What is the interest rate?

The interest rate is fixed at 7.9%.

Is there a charge for a PLUS loan?

The Federal Direct Loan Program charges a 4% loan fee (minus a 1.5% rebate). As a result, any PLUS loan funds applied to the student account will reflect a 2.5% reduction.

When do I begin repaying a PLUS loan?

Repayment of principal and interest begins 60 days after the final disbursement for the academic year.

What if I don't pass the credit check?

If you don't pass the credit check, you will be notified in writing by the Direct Loan Center. The letter will notify you of the following options:

• Appeal: If you believe the denial was an error, you may work with the Direct Loan Center to reverse the credit decision.
• Endorsement: You may have someone endorse the loan. This person would be responsible to repay the loan if you are unable to make the payments.
• Federal Direct Unsubsidized Loan (in place of a PLUS denied): The student can request additional loan funds only after the PLUS loan is denied. The additional Unsubsidized loan maximum is $4,000 for freshmen/sophomores and $5,000 for juniors/seniors. This loan request form may be obtained from the Office of Scholarships & Financial Aid (OSFA). Only one parent must apply for a PLUS and be denied based on adverse credit. However, if both parents apply independently and one is approved, the student is not eligible for the increased loan amount.

Steps to process the PLUS loan

1. Thoroughly complete the loan request.
2. Submit the loan request to the Office of Scholarships and Financial Aid.
3. The OSFA will electronically submit your application to the Direct Loan Center.
4. Complete the Promissory Note online at https://dlenote.ed.gov/empn/index.jsp. Be sure the parent who applied for the loan is the parent completing the promissory note.
5. The Direct Loan Center will perform a credit check. You will receive a letter from them regarding the approval or denial of your loan.
6. Loan funds will be disbursed upon receipt of a complete Promissory Note and credit approval.

For more information:

Loan and repayment calculators:
     http://www.finaid.org/calculators/
     Repayment begins 60 days after the loan has been fully disbursed.

General PLUS loan information:
     Direct Loan Servicing Center
     1-800-848-0979 or TDD 1-800-848-0983
     http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp

Credit check:
     Direct Loan Center
     1-800-557-7394


To complete and print an Undergraduate Federal Direct Parent PLUS Loan Request, click here. After printing the loan request, return it to our office for processing.