The financial needs of our students' families are as different as the families themselves. For most students, the need-based assistance offered by HMC is sufficient to pay for college when combined with the family's calculated contribution.

However, the reality for many families is that they are not prepared to contribute the calculated family contribution. Many parents look for low interest financing options, such as the Federal PLUS Loan, to help reduce monthly expenses and extend the payment of the year's costs.

The Stafford Loan combined with the Federal PLUS Loan make up the Federal Family Education Loan Programs (FFELP) (PDF). The Federal Parent Loan for Undergraduate Students (PLUS) offers parents an excellent low-interest loan alternative to paying for college costs during the academic year. With a PLUS Loan, a family can borrow up to the difference between the cost of attendance and the amount of any financial aid the student is eligible to receive.

If your family is denied a PLUS loan, you are automatically eligible for an additional Unsubsidized Federal Stafford Loan for the following amounts, based on grade level: up to $6,000 per year for freshmen and sophomores and up to $7,000 per year for juniors and seniors.

PLUS Loan Benefits
Who May Apply
Interest Rates and Terms
How to Apply

PLUS Loan Benefits

Benefits of the PLUS Loan include:

• low interest rate
• lower monthly payments
• an extended payment period for educational costs

Who May Apply

To borrow a PLUS loan for a student, the parent must be the student's biological or adoptive mother or father. A stepparent whose assets and income are taken into account when determining the student’s Expected Family Contribution is also eligible to borrow a PLUS loan. Interest Rates and Terms Interest is fixed at 8.5%.  There is no grace period for a PLUS Loan. Interest begins to accrue immediately after the first disbursement of the PLUS Loan, and repayment of both principal and interest begins within 60 days after the final disbursement of the loan.

Interest Rates and Terms
   
Interest is fixed at 8.5%.

There is no grace period for a PLUS Loan. Interest begins to accrue immediately after the first disbursement of the PLUS Loan, and repayment of both principal and interest begins within 60 days after the final disbursement of the loan.

How to Apply

1) Apply for a PLUS Loan and submit a Master Promissory Note (MPN) Parents who submitted a MPN for the previous school year need not submit a new MPN, but they do need to pre-qualify. You can pre-qualify by phone, fax, or the website of one of our recommended lenders.  

2) Before funds can be credited to the student’s account, parents must submit:

• The Parent Authorization of Allowable Charges (PDF) 
• The Parent Property Lien Statement (PDF) – required each year
  

These forms can be mailed or faxed to the Office of Financial Aid.

Note: If your parent borrowed a Federal Parent Loan for Undergraduate Students (PLUS) through College Board, please refer to the "Selecting a New Lender for 2008-2009 (PDF)" parent flyer.