FAQ for Parent PLUS and Private Loans
Direct Parent PLUS Loan FAQs
Q: How much can a parent borrow with a Direct Plus Loan?
A parent may borrow up to the estimated cost of attendance minus any financial aid that has already been awarded to the student.
Q: What is the interest rate of a Direct Plus Loan?
Direct Plus Loans have a fixed interest rate of 7.9%.
Q: Are there fees associated with a Direct Plus Loan?
There is a 2.5% net fee (4% origination fee less an up front rebate of 1.5% that assumes 12 on-time monthly payments) deducted at the time of each disbursement.
Q: What determines a parent’s eligibility for a Direct Plus Loan?
A Direct Plus Loan is available to parents of dependent, undergraduate students. You must be a U.S. citizen, national or eligible non-citizen to qualify. The applicant must be determined credit-worthy based on federal guidelines.
Q: How does a parent apply for a Direct Plus loan?
A parent can apply online by going to www.StudentLoans.gov and completing the Plus Loan Request Process. A parent will need to associate the loan with Evangel University and the student who will be receiving the funds. A new Direct Plus Loan must be applied for each year for the student.
Q: How will the money be disbursed to Evangel?
The loan proceeds are sent electronically to Evangel and will then be posted onto the student’s account. In most cases, the loan is scheduled to disburse at the beginning of each semester.
Q: When does repayment begin on a Direct Plus Loan?
The first payment is due within 60 days after the final disbursement on the loan. However, parents can request to defer the payments until six months after their student has either graduated or dropped below half-time status. Depending on the repayment plan that is chosen, parents have from 10 to 25 years to pay off the loan.
Private Loan FAQs
Q: How much can a student borrow with a private loan?
A student may borrow up to the estimated cost of attendance minus any financial aid that has already been awarded to the student.
Q: What is the interest rate on a private loan?
The interest rate on private loans varies from lender to lender and also depends on the borrower’s credit score. The interest on private loans is a variable rate.
Q: Are there fees associated with a private loan?
There generally are basic fees associated with private loans, but most lenders do not withhold a fee from the loan proceeds at the time of disbursement to the student.
Q: What determines my eligibility for a private loan?
The private loan program is credit-based. Most lenders require at least two years of established credit history for the student, or will require that the student have a credit-worthy cosigner. Students must be at least 18 years old to apply for a private loan.
Q: I am an international student. Can I apply for private loans?
Some private loan lenders will offer loans to non-U.S citizens who are attending Evangel. The student borrower is required to have a creditworthy cosigner who is a U.S. citizen or a non-citizen permanent resident. The appropriate Citizenship and Immigration Services documentation will have to be provided as required by the lender.
Q: How does a student apply for a private loan?
A student can apply online with the banking institution of their choice. The student will need to associate the loan with Evangel University. A new private loan must be applied for each year.
Q: How will the money be disbursed to Evangel?
The proceeds are sent electronically to Evangel and will then be posted onto the student’s account. In most cases, the loan is scheduled to disburse at the beginning of each semester.
Q: When does repayment begin on a private loan?
Repayment begins 6 months after the student ceases to be enrolled in school. Some lenders however, require payments of interest to be paid while the student is in school.