Plus & Private/Alternative Loans
If you require more aid than what has been provided by your grants, scholarships and federal direct loans, you may want to consider a PLUS or private/alternative loan to cover your remaining tuition costs and/or for your books & supplies or living expenses.
Students should NOT apply for their PLUS or private/alternative loans until they receive their financial aid package each year. Your financial aid award letter provides important information regarding your remaining balance and maximum eligible loan amount. CCS strongly recommends you budget carefully before determining your loan amount and take only what you will need.
What is the PLUS Loan?
The federal Parent PLUS loan is intended to assist parents in paying for their children’s education or, more often, to supplement the financial aid received by their student. For more information visit studentaid.gov.
Parents of dependent students
The parent must:
- Be a U.S. citizen, U.S. national or eligible noncitizen,
- not be in default as a borrower or cosigner on any educational loan, and
- not owe a refund on an educational grant and be creditworthy as determined by direct loans.
The student for whom the parent is borrowing must:
- Have completed the Free Application for Federal Student Aid (FAFSA),
- be dependent as defined by the U.S. department of education (see FAFSA) and certified by the school,
- be a U.S. citizen, U.S. national or eligible non-citizen.
- Be registered for, or accepted for, a minimum of 6.0 credit hours at CCS each semester,
- be making Satisfactory Academic Progress (SAP) towards a degree and
- not be in default as a borrower on any educational loan or owe a refund on an educational grant.
No – PLUS loans are not guaranteed. Borrowers must pass a credit check in order to be approved for the PLUS loan. Therefore, it is very important that parents wishing to utilize the PLUS loan apply and confirm their approval before the school year begins in September.
Cost of attendance minus other financial aid awarded. Check your financial aid notification letter for your maximum yearly eligibility. CCS strongly encourages you to create a budget and borrow only what you need. PLUS loan funds may be used to pay for the student’s related expenses in addition to tuition and fee costs. Related educational expenses include books & supplies, rent/housing, food, transportation and personal expenses (toiletries, laundry, etc.) and make sure to borrow what you need for the entire academic year (in most cases September – May), not one semester at a time. Multiple applications can have a negative effect on your credit history. You should also remember to consider the loan fees that will be deducted at disbursement when determining your loan amount. Parent Plus Loan borrowing limits are available on studentaid.gov.
Current interest rates are available on studentaid.gov.
The origination fee is deducted from PLUS loans before disbursement. Current loan fees are available on studentaid.gov.
Repayment generally begins 60 days after the final disbursement. For most families, this means March of the academic year. However once your loan has been disbursed you may request that repayment be deferred during periods while your student is enrolled at least half-time (6.0 credits). Visit https://studentaid.gov/manage-loans/repayment
- Visit Financial Aid: Forms to print and complete the annual Parent Plus Authorization Form and submit to [email protected] for review and processing.
- Complete the Direct Loan Master Promissory Note (MPN) for Parent PLUS loans. The MPN details the terms of the loan and the responsibilities of the borrower. It is a contract with the federal government and signing it is a pledge to repay all the loans disbursed to you during your student’s education. You will be notified as soon as possible if your loan is denied.
- Once your loan is disbursed, visit StudentAid.gov for detailed account summaries and information on paying for and managing your loans.
- In most cases, the initial application is the only time you will need to complete the PLUS Master Promissory Note for CCS. Parent Plus Loan Application for Parents of Dependent Students will need to be completed each academic year you wish to apply for PLUS loan funds.
If you do not have Web access, contact the CCS Financial Aid Office for assistance.
To appeal credit denials or add an endorser, contact the COD School Relations Center at 800.557.7394 or visit StudentAid.gov.
Dependent students whose parents are denied for the PLUS loan are eligible to borrow an additional $4,000 to $5,000 in unsubsidized Stafford loan funds. Though this amount is often less than is required, it can be helpful in reducing the overall costs.
Having your student apply for an alternative loan with a cosigner may also be a possibility to consider. If you are unable to secure a necessary loan to supplement your student’s financial aid package, please contact our office to discuss other alternatives. CCS strongly encourages students and families to have all funding in place before the enrollment period begins and charges apply.
Unless special arrangements are made with the Financial Aid Office, the loan will be disbursed electronically to CCS in two equal payments, one for each semester.
Loan funds must first be used toward the balance owed at CCS. If funds remain after the balance is paid, a refund check will be issued for the excess by the CCS Business Services Office. These funds should be used only for the student’s valid educational expenses, such as books & supplies, rent, food and transportation.
When a PLUS loan has been taken, refund checks are processed in the parent’s name unless specified in writing by the borrower.
First time borrowers must wait 30 days from the beginning of the semester before their loans may be applied to their accounts. Therefore, for the first semester, refund checks are not available until roughly five weeks into the semester. First-time students will need to make other arrangements to cover their expenses until their funds arrive.
Contact your loan servicer. If you’re not sure who your loan servicer is, visit https://studentaid.gov/ and login to My Federal Student Aid to get contact information.
Private/Alternative Loans
Private/Alternative loans are private supplemental loans offered by various lenders. They are meant to function as a supplement to the grants, scholarships and Federal Direct Loans you receive. Search and find loans that fit your needs by visiting https://www.elmselect.com/v4/ or https://www.studentchoice.org/ for more information.
No, they are not guaranteed like Federal Direct loans and almost always require you have a creditworthy cosigner.
CCS recommends that all students have a creditworthy cosigner when applying for private/alternative loans, even if you are approved without one. Besides increasing your chances of being approved for your loan each year you attend school, in many cases it will lower the origination fees and/or interest rate of the loan.
CCS recommends that all students have a creditworthy cosigner when applying for alternative loans, even if you are approved without one. Besides increasing your chances of being approved for your loan each year you attend school, in many cases it will lower the origination fees and/or interest rate of the loan.
Private/alternative loan borrowers must be 18 years of age and a U.S. citizen or eligible noncitizen, or have a U.S. citizen or eligible noncitizen as their cosigner.
You must be enrolled at least half-time (6.0 credits) to receive some kinds of private/alternative loans.
Many banks and educational lending organizations offer a private/alternative loan option. CCS does not endorse any lender.
Please feel free to conduct your own research and utilize any lender you prefer. Some additional time may be necessary while we work with your selected lender to set up the necessary processing channels. If you need assistance with any aspect of your loan processing, please contact the Financial Aid Office at (313.664.7495) or via email at [email protected].
Whichever lender you ultimately choose, we recommend that you research lenders’ interest rates and payment terms before you decide which to apply for. Doing multiple loan pre-approvals may have a negative effect on your credit rating.
In most cases yes, these loans can be deferred while you are in school. You should discuss deferment options with the lender before you decide which loan to apply for. Students are responsible for requesting deferment status from their private/alternative lenders.
Fees vary depending on the lender you choose, whether or not you have a cosigner and your associated credit scores.
As with the interest rate, make sure you know about associated fees before you sign your promissory note.
Interest rates vary depending on the lender you choose, whether or not you have a cosigner and your associated credit scores. In most cases your interest rate will not be determined until final approval is granted. Make sure you know your finalized interest rate before you sign your promissory note.
Check your financial aid notification letter for your maximum yearly eligibility. CCS strongly encourages you to create a budget and borrow only what you need. PLUS loan funds may be used to pay for the student’s related expenses in addition to tuition and fee costs. Related educational expenses include books & supplies, rent/housing, food, transportation and personal expenses (toiletries, laundry, etc.) and make sure to borrow what you need for the entire academic year (in most cases September – May), not one semester at a time. Multiple applications can have a negative effect on your credit history. You should also remember to consider the loan fees that will be deducted at disbursement when determining your loan amount. Parent Plus Loan borrowing limits are available on studentaid.gov.
Unless special arrangements are made with the Financial Aid Office, the loan will be disbursed electronically to CCS in two equal payments, one for each semester.
The loan funds you receive must first be used to pay the balance that is owed to CCS. If funds remain after the balance is paid, a refund check will be issued for the excess by the CCS Business Services Office. These funds can be used to pay for valid educational expenses, such as books and supplies, rent, food, transportation and personal expenses.
Always contact the lender to find out why. In some cases, the problem may be easily corrected. If you are unable to secure a necessary loan to supplement your financial aid package, please contact our office to discuss other alternatives. CCS strongly encourages students to have all funding in place before the enrollment period begins and charges apply.