| Type of Loan |
Eligibility &
Finances |
Rate |
Loan Fees |
Repayment |
Borrower |
Federal Parent Loan (PLUS)
Through various lenders |
COA – Aid = $$
Credit Check |
FIXED
8.5%
|
Origination Fee: 3%
Federal Default Fee: 1% |
10 years; begins 60 days after disbursement; can choose to defer payment while student is in school. |
Parent |
* COA = Cost of Attendance
Interest Rate - The interest rate for the Federal PLUS loan is fixed as of July 1, 2006, at 8.5%.
Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.
Origination Fee - A 3% fee is deducted from each disbursement. This is a reserve fee that goes to the Federal Government.
Federal Default Fee - 1% deducted from each disbursement.
Disbursement of Loan Funds - Funds will be provided by the lender of your choice and sent directly to Concordia by Electronic Funds Transfer (EFT). The loan will be disbursed in 2 installments, each equal to ½ the loan amount.
Funds will first be applied to the student’s tuition, fees, room & board, and other school charges. If any loan funds remain after these charges, the parent will receive a refund check. Contact the Student Accounts Office with any questions concerning the refund process.
Any remaining loan funds must be used for the student’s education expenses.
Repayment - Repayment begins within 60 days after the final disbursement. Deferment of payment can be requested while the student is in school.
Denial - If a parent is denied, the other parent may apply. If one or both parents are denied, the student becomes eligible to borrow additional unsubsidized Stafford funds. For the maximum amount of these funds, see the Independent additional unsubsidized amounts, based on grade level, on the Loan Limit Chart.
NOTE: You must Contact Financial Aid to request these additional Stafford funds, if a denial is received.
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