In addition to student loans, parent loans are also available. Parents of dependent students may borrow through the Federal PLUS Loan Program any amount up to the cost of attendance minus any financial aid received by the student. These loans enable parents with good credit histories to borrow to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half-time. This year the interest rate is 7.5% fixed. Repayment generally begins 60 days after the final disbursement for the academic year. However, if the parent applies for a PLUS loan and it is declined by a lender, the student can then come to the financial aid office to inquire about an Unsubsidized Stafford Loan.

How do my parents pay back the loan?

The lender will arrange a repayment schedule. Parents can usually choose the Standard, Extended, or Graduated Repayment Plan. Depending on the lender, additional repayment plans may be available. FFEL PLUS loans can also be consolidated. Check with your lender to find out if loan consolidation is for you.

Parent PLUS Loan Application Procedures

PLUS Loan Lender Selection Form

Remember, you may request your parent loan through any lender.  If your lender is not shown on the Lender Selection Form, you may write in the name of the lender you wish to borrow from and you must provide ETSU with the application.

Please be aware that the benefits offered by lenders to student loan borrowers vary and are subject to change.  Before selecting a lender, please contact various lenders of interest and review their borrower benefits to determine which lender best meets your educational borrowing needs.  The lenders listed in our Preferred Lender list have demonstrated their commitment to offering ETSU students the best overall terms and services over the life of their loan.

ETSU does not receive any monetary benefit from any lender.

HOW DOES ETSU SELECT ITS PREFERRED LENDERS?  Our preferred lenders are selected on the basis of:

·        Ability to transmit/process loan information electronically

·        Advantages offered to students

·        General student feedback, student preferences over time

·        Track record of performance with ETSU

·        General input from the business community; professional contacts in the student financial aid community, and ongoing review of appropriate professional business and trade journals

·        Determinations are made on an annual basis by the Director in close consultation with the Assistant Directors