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Federal Direct Parent PLUS Loan ProgramThe Federal Direct Parent PLUS Loan is a long-term educational loan program availableto parents of dependent undergraduate students. Parents may apply for up to the fullcost of education — tuition, mandatory fees, room and board, books and supplies,even transportation — less other aid received. For more information and applicationinstructions, visit www.usc.edu/financialaid/loans.To Qualify For the PLUS LoanThe student must be considered dependent for the purposes of receiving financial aid, but need not be claimed as a dependent on theparent’s tax return. The parent does not need to apply for need-based financial aid. Both the parent and student must be U.S. citizens oreligible non-citizens. There is no required income-to-debt ratio and the credit requirements are less strict than those for private loans.To qualify, the parent’s credit must be free of the following adverse items:• Currently 90 days or more delinquent on repayment of any debt.• 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.Features of the PLUS Loan• The interest rate is fixed at 7.9 percent. Federal Origination Fees of 4.0 percent are deducted from each disbursement.• To encourage responsible borrowing, an Upfront Rebate of 1.5 percent is applied when the loan is disbursed and will increasethe amount of each disbursement after fees have been deducted. Parents must make the first 12 monthly payments on timefor the rebate to become permanent.• Parents do not need to complete a Free Application for Federal Student Aid (FAFSA) form or submit tax returns to apply.• Parents who wish to borrow a Federal Direct Parent PLUS Loan for their child will need to complete a Parent PLUS Loan Request form.• Either parent may apply, or both parents may apply for separate Parent PLUS loans.• No prepayment penalty.• Parent may postpone payments up to 60 months while student is in school at least half-time.• Payment Flexibility: income-sensitive, graduated and extended payment options.• Federally insured against death and disability.If the PLUS Loan Application is DeniedIf the parent’s PLUS Loan application is denied by the Federal Direct Loan Servicer, the parent may reapply with a co-signer (called an“endorser”). Alternatively, the student may be eligible for an additional Federal Direct Unsubsidized Stafford Loan of up to $4,000 or $5,000.www.usc.edu/financialaid/loans7