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Welcome to Financial Aid
What Is A PLUS Loan?
COCC participates in the Federal Family Education Loan Program (FFELP). The Parent Loan for Undergraduate Student (PLUS) loans are included under the FFELP. PLUS loans enable parents, stepparents, or adoptive parents of a dependent undergraduate student to borrow money to supplement their child's college expenses. Many families find PLUS loans an attractive alternative to using lifetime savings or investments for educational expenses.
Who is Eligible?
Parents, stepparents, and adoptive parents of dependent undergraduate students attending school at least half-time are eligible to apply for a PLUS loan. These loans are not based on the family's income or assets. A credit report from a national credit bureau by the lender will be obtained to determine if the parent will be eligible. Parent must be US citizens or eligible non-citizens. Parent must be credit worthy which means that the parent borrower must not have any outstanding tax liens, judgements, deliquent, defaulted loans, extensive credit card debt, any bankruptcy, forclosure, or wage garnishment with in the past five years. COCC requires that students submit a complete Free Application for Federal Student Aid (FAFSA) prior to the parent borrower applying for a PLUS loan
If the borrower is not eligible for the PLUS loan, the student may be eligible for an additional unsubsidized Stafford loan. Additional information is available at the Student Financial Aid Office.
Interest Rates and Fees
The interest rate could change each year of repayment, but by law, it will never exceed 9 percent. The interest rate is adjusted each year on July 1. Interest is charged on the loan from the date that the first disbursement is made until the loan is paid in full. A 2.0% federal origination fee and up to 1.0% guarantee fee may be deducted from your loan proceeds prior to disbursement.
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2008-2009 Federal PLUS Loan Interest
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During repayment
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8.5%
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How much can I borrow?
The maximum eligibility (yearly limit) on a PLUS Loan is equal to the student’s cost of attendance budget minus any other financial aid the student receives. Funds are available based on enrollment in a minimum of 6 credits per term.
For example:
Sally will be attending COCC for the Fall, Winter, Spring terms. She has decided to live with her parent while she attends school. Her cost of attendance budget totals $9,312 and COCC can only offer Sally a subsidized loan for $3,500. The loan will not be enough to cover tuition, fees, charges, and education expenses. So Sally's parent(s) decide to apply for a PLUS loan. The parent(s) will be able to apply for a $5,812 PLUS loan.
(This example is for demonstation purposes only. Each parent(s) PLUS loan will differ due to the student individual circumstances. If you have concerns or question, contact the Student Financial Aid Office.)
Disbursement
The loan funds will be sent to the school by the lender and will be used to pay for tuition, fees, room and board, and other school charges. Disbursement dates will coincide with dates that are specified by the school and cannot be requested prior to regularly scheduled disbursement dates. For disbursement dates please view the 'Term Disbursement Information' located on our web site.
If any loan money remain, the parent will receive the amount as a check, unless they authorize the remaining money to be released to the student. Any remaining loan money must be used for the education expenses of the student.
Repayment
Generally, repayment must begin within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. There is no grace period for these loans. This means that interest begins to accumulate at the time the first disbursement is made to the College. Parents must begin repaying both principal and interest while the student is in school. For repayment options and deferments you will need to contact the lender or servicer of your loan.
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