Page last updated on September 26, 2016
The Pitzer College Financial Aid Office recognizes that financing a Pitzer education may involve deferring some of the cost through a low-interest loan program. Your educational investment will require informed financial decisions about loans. We are committed to helping you understand your federal loan eligibility and options.
Federal Direct PLUS Loans
The Direct PLUS Loan program enables parents with a good credit history to borrow as much as the full cost of attendance, minus any financial aid, each year. Interest begins to accrue immediately, but repayment may be deferred until six months after the student ceases to be enrolled at least half-time. The repayment term is 10 years. All Federal PLUS borrowers must complete a Free Application for Federal Student Aid (FAFSA).
Direct PLUS Loans have a fixed interest rate of 6.31%. The loan fees for the Direct PLUS Loans is 4.27% which is deducted from each loan disbursement expected by the college.
Master Promissory Note
The Direct PLUS Loan Master Promissory Note allows you to borrow a Direct PLUS Loan for your child’s entire college career by signing only one note. It can be used for a single period of enrollment (one academic year) or for multiple periods (such as the student’s first through senior years).
This note is valid for up to ten years from the original date of signature. It is very important that you understand the long-term commitment you are making by signing this note. We encourage you to record all amounts that you borrow and keep all of your loan paperwork together so you can keep track of your cumulative borrowing.
How and When Do I Receive the Direct PLUS Loan Funds?
Direct PLUS Loan funds are disbursed in two equal installments, normally once each semester. These funds will be received by the school electronically. The student must be enrolled at least half-time (two courses) when the loan is disbursed to be eligible to receive the funds. Your Direct PLUS Loan funds will be credited to the student’s account and will reduce the amount owed to the school.
Steps to Applying for a Direct PLUS Loan