You must choose the amount you want to borrow, and you do not have to borrow the maximum amount..
Cost of Borrowing
For 2014-15 loans, the interest rate is 7.21%. (These rates apply to first disbursed between 7/1/2014 & 6/30/2015:
Loan Origination Fee
In addition to the Interest costs, borrowers must also pay a federal Loan Origination Fee that is deducted from each loan disbursement. For loans first disbursed on or after Oct. 1, 2014 and before Oct. 1, 2015, the fee is 4.292% of each loan disbursement.
Borrowing from the PLUS Loan program requires the completion of an Electronic Master Promissory Note (e-MPN). You can use the e-MPN to make one or more loans for one or more academic years while the student for whom you are borrowing is enrolled at Towson University.
The Bursar’s Office will credit loan proceeds to the student’s account to pay tuition and other university charges. Remaining funds go to you, or with your permission, directly to the student.
The repayment period for principal and interest begins the day after the loan has been fully disbursed. For example, a loan covering the fall and spring terms will enter repayment after the disbursement for the spring term. The first payment becomes due within 60 days after the final loan disbursement of loan proceeds for an academic year. You will have three repayment options:
NOTE: You can prepay all or a portion of your loan at any time without penalty.
Additional Information on Borrowing
You can estimate your monthly payments with various repayment plans with the repayment calculators available online from the U.S. Department of Education’s Direct Loan Web site at http://www.ed.gov/DirectLoan.
For more information on the cost of borrowing or repayment, call the Federal Student Aid Information Center at 1-800-4FEDAID (1-800-433-3243).
Postponements of Payments
You may defer payments if you meet one of several conditions show in the U.S. Department of Education's Loan Deferment Summary table.
You may be eligible for additional deferments if, at the time you obtain a Direct Loan, you have an outstanding balance on a loan from the Federal Family Education Loan Program (FFELP), including any Federal Stafford Loan, Guaranteed Student Loan, Federal PLUS Loan, Federal Supplemental Loan for Students, or Federal Consolidation Loan borrowed before July 1, 1993. The same deferments that apply to these FFELP’s can apply to your Direct Loan. If you are unable to make payments on your PLUS Loan for reasons such as unexpected personal problems or poor health, you may request forbearance if you do not qualify for a deferment. Forbearance allows you one of these options: postponement of payments, extension time between payments, or smaller payments than originally scheduled. Interest continues to accrue during a period of forbearance.
You may also receive forbearance if you serve in a medical or dental internship or residency, or if you serve in a position under the national and Community Service Trust Act of 1993, or if you are obligated to make federal student loan payments equal to, or greater than, 20 percent of your total monthly gross income (there is a three-year limit for this forbearance).
You can discharge a PLUS Loan under the specific circumstances.
Consolidating your loans allows you to make only one monthly payment to cover your Federal Direct PLUS Loans and any federal student loans you may have for your own education.
Financial Aid Office