Federal Direct PLUS Loan is available to parents of undergraduate, dependent students. For the parent to be eligible to borrow the Federal Direct PLUS Loan,
- the parent must not have an adverse credit history,
- the parent and student must be U.S. citizens or eligible noncitizens, and
- the student must be registered with Selective Service.
The interest rate for the federal Direct PLUS Loan, with a first disbursement on or after July 1, 2021 - June 30, 2022, is a fixed 6.28%. Loan funds are disbursed via EFT (electronic funds transfer) and remitted to Hampden-Sydney in two disbursements, one at the beginning of each semester, and are applied directly to the tuition account.Repayment of principal and interest begins within 60 days following full disbursement of loan proceeds, with up to 10 years to repay. You may request a deferral of repayment on this loan while the student is in school. The parent borrower must pass a credit check and must not have adverse credit history.
For loans where the first disbursement is made on or after October 1, 2020, the federal loan fee is 4.228%.