Louisiana Delta Community College
Office of Financial Aid
Instructions for Federal Direct Parent PLUS Loan Process
The Federal Direct Parent PLUS Loan program (PLUS) is a non-need-based source of loan funds for the parent(s) of
dependent student. PLUS Loans may be used in conjunction with Federal Direct Student Loans. Each year, parents of
dependent students may borrow an amount not to exceed the cost of attendance less any financial aid (including Federal
Direct Loans). Repayment begins 60 days after the final disbursement is made unless the parent borrower makes other
arrangements with their lender to defer payments.
To find current interest rates go to www.studentaid.ed.gov/types/loans/interest-rates
.
A credit check is performed on all borrowers, and preapproval is required through the U.S. Department of Education.
*Please note: A student is considered dependent if he or she in under the age of 24, unmarried, and has no legal dependents
at the time the FAFSA is submitted.
ENSURE that the dependent student in which you are applying for the loan has:
o Completed and submitted a 2019-2020 Federal Application For Federal Student Aid (FAFSA) at
www.fafsa.gov. The FAFSA must be submitted prior to a parent requesting a PLUS loan. The FAFSA must
be received by LDCC—school code is 041301. The dependent student and parent must electronically sign
the FAFSA with their FSAID. If parent does not have a FAFSA Department of Education FSAID, you may
create one at fsaid.ed.gov
o applied for admissions to LDCC
o enrolled at least half-time (six credit hours) in a degree seeking program and
o Met Satisfactory Academic Progress (SAP).
COMPLETE a PLUS Loan application and Master Promissory Note (MPN) at the Department of Education website
at www.studentloans.gov. Once you access this website, click on “Sign In” and enter requested information.
Please note: you will need your FSAID. Next click on “Complete Master Promissory Note” then select “Parent
PLUS” as the type of loan you would like to receive. (You must parental information when you apply)
DETERMINE how much you need to borrow. Be sure to adjust for the federal origination fee that will be withheld
at disbursement. The parent will be notified by the U.S. Department of Education of acceptance or denial of the
PLUS loan request. The LDCC Office of Financial Aid will also receive an approval or denial based on the credit
evaluation done by the U.S. Department of Education.
If the PLUS loan is denied, the servicer will provide the instructions concerning an endorser. If a PLUS Loan is
denied and the parent does not wish to seek an endorser, the student becomes eligible for an additional unsubsidized
loan up to $4000, depending on the student’s financial aid cost of attendance.
Note: Student must request an Additional Unsubsidized Direct Loan through the LDCC Office of Financial Aid.
COMPLETE and SUBMIT the attached LDCC Parent PLUS LOAN Authorization Form. The Authorization Form
must be submitted to the LDCC Office of Financial Aid before you can receive disbursements on your loan.
All requirements must be complete before the Parent PLUS Loan funds can be disbursed.
Failure to complete all requirements will result in a delay in loan disbursements and possible cancellation of
the loan.
