of the ARTS 2008/2009
Parents, natural or adoptive, step-parents or legal
guardians with good credit histories are eligible to borrow on behalf of their
dependent undergraduate students who are registered at least half time. The borrower must be a
A parent may borrow on behalf of their student if
they meet the criteria of being a “dependent” student as defined by the FAFSA.
Federal standards of creditworthiness are
substantially more flexible than those required under private loan
programs. You must pass a credit review
and you must not have adverse credit history, defined as:
*A
current 90-day delinquency
*Debt
discharged in bankruptcy during the past five years
*Evidence
of a default, foreclosure, tax lien, repossession, wage garnishment,
or write-off of a
Title IV debt during the past five years.
If you do not meet the credit criteria you can apply
with an Endorser, who must meet the credit criteria. The Endorser promises to repay the loan if
the borrower fails to do so as agreed.
PLUS Loan credit decisions are good for 180 days.
The maximum amount that may be borrowed in a year is
the student’s cost of attendance, minus any financial aid received. Please refer to the budget worksheet within this information to assist you in
determining the amount you will need to borrow.
Borrow only what you need, this is a loan and must be repaid. It is in your best interest to read all
information regarding any loans.
As of
Generally, the repayment period is 10 years. There are, however, various loan repayment
and consolidation programs available, either through a lender or through the
federal government that may extend the period of repayment. For more information on repayment, contact
the lender or the Office of Financial Aid.
Monthly payments are calculated based on the amount
owed at the start of repayment. Payments
begin within 60 days of the final loan disbursement. Deferments are available,
contact your lender for further information.
The federal government assesses an origination fee
of 3%, which is deducted from each disbursement of the loan. The guarantee agency assesses a Federal
Default Fee of up to 1%. Please check
with your lender regarding these fees as all or a portion may be paid by the
lender/guarantor.
There is no grace period on PLUS loans as there are on Stafford Loans. In general, PLUS loans enter repayment after the final disbursement of the loan, and the first payment is due within 60 days.
To apply for the Parent PLUS loan you will need to contact the lender of your choice by phone or their web-site and complete their application process. Once the application is approved the Financial Aid Office will be asked to certify the requested amount and student’s year level.
Loan funds are dispersed in two equal payments
during the loan period for which you are borrowing. Usually half will arrive in September, the
second half in January. Loan funds are
usually sent electronically to CalArts for disbursement to the students
account. If sent as a check, co-payable
to the borrower and CalArts, the check must be mailed to the borrower for
endorsement, which can cause delays in crediting the students account. Apply
early.
Included with this PLUS Loan information is an
authorization form allowing CalArts to apply any PLUS Loan funds received
electronically to your students account.
Please print, complete and return to the CalArts Office of Financial
Aid. Receipt of this form is necessary
before any credits can be made to the students account.
Although you may use any lender that participates in
the Federal PLUS Loan program, CalArts has developed a list of suggested
lenders selected as a result of years of experience with student loan lenders
and their submission of our Request for Information.
The link below outlines each lender’s contact
information, fees, interest rate, repayment incentives and options. Contact the lender directly for any updated
information. You should always review
and verify exact terms, conditions, qualifications and disclosures associated
with any loan.
Parents have the right and ability to select the
education loan provider of their choice and are not required to use any of the
suggested lenders.
Be aware that CalArts is not electronically
connected with every lender and guarantee agency. If you choose a lender not listed be sure to provide the financial aid office with their
contact information. If the lender you
choose issues their disbursements via paper check it is VERY important that you
apply EARLY to ensure receipt of funds before the date of registration.
Print, complete and return this form to the Office of Financial Aid
All information is accurate as of