Financial Aid

The repayment period for a PLUS Loan begins on the date the loan is fully disbursed (paid out), as there is no grace period. Parent PLUS borrowers may contact their loan servicer to request a deferment. Deferments may be available:

• while you or your student are enrolled at least half-time (6 units), and

• for an additional 6 months after the student ceases to be enrolled at least half-time

All eligibility requirements must be met in order to qualify for a PLUS Loan. If you or your student does not meet these criteria, please plan accordingly to help meet your student's school expenses.

A FEDERAL DIRECT  PLUS APPLICATION IS TO BE COMPLETED BY THE BORROWING PARENT ONLY

• Students who apply for a PLUS loan online and/or complete an application using a parents information will be considered as having committed Federal Student Aid Fraud and will be subject to criminal prosecution, termination of financial aid and/or expulsion from Butte College.

• The Butte College Financial Aid Office may request notarized copies of government issued ID to verify identity of borrower if fraud by the student or other family member(s) is suspected. The Office of Inspector General (OIG) will be notified of loan fraud suspicion and/or activity. 

A FEDERAL DIRECT PLUS APPLICATION IS TO BE COMPLETED BY THE BORROWING PARENT ONLY

• Students who apply for a PLUS loan online and/or complete an application using a parents information will be considered as  having committed Federal Student Aid Fraud  and  will be subject to criminal prosecution, termination of  financial aid and/or expulsion from Butte College.
  
  
• The Butte College Financial Aid Office may request notarized copies of government issued ID to verify identity of borrower if fraud by the student or other family member(s) is suspected. The Office of Inspector General (OIG) will be notified of loan fraud suspicion and/or activity

Steps to Apply: 4-Step Federal Direct PLUS Loan Application Process

Step 1: Your student must have completed a Free Application for Federal Student Aid (FAFSA) for the current academic year attending and received a Financial Aid Offer Notification email for the current academic year, which indicates their financial aid file is complete and their eligibility has been determined.

Step 2:  The Parent Borrower only must apply for a Direct PLUS Loan at http://studentaid.gov  and complete a Master Promissory Note (MPN) with the U.S. Department of Education, using your Federal Student Aid ID (not your child's). The MPN is a legal document that explains the terms and conditions of the loan and binds you to repay the loan and any accrued interest and fees. Parents Borrowers need to reapply for each new academic year for a Direct PLUS loan. Butte College School Code: 006972

Step 3: Parent borrower must complete a Credit Check with the U.S. Department of Education. To be eligible for a Parent PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have such a history. An endorser is someone who agrees to repay the loan if you do not. If you are declined for a PLUS Loan and you choose not to use an endorser, your student may be eligible for additional unsubsidized loan funds.

Step 4: Once Butte College is notified by the Federal Government that a PLUS application is ready for processing, the Financial Aid Office will email a Butte College Supplemental PLUS application to the borrower’s email listed on the PLUS application only. We are not able to provide information to anyone other than the borrower to protect confidential information. You may be asked to provide a notarized copy of Photo ID to verify borrower’s identity.

Interest rates and fees are adjusted by Congress for each academic year, and begin July 1 each year. As per changes authorized by the Bipartisan Student Loan Certainty Act of 2013, the interest rate for Direct Loans will be the sum of a uniform "index rate" plus an "add-on" that varies depending on the type of loan (in this case, a PLUS loan taken out by a parent). The interest rate for a loan, once established, applies for the life of the loan -- that is, the loan has a fixed-rate. As a result, parent borrowers who borrow in more than one award year will likely have a number of fixed-rate loans, each with a different interest rate.

What kinds of problems could cause my Parent PLUS loan to be delayed or cancelled?

Non-Degree Status of Your Student

Students must be enrolled at Butte College in an eligible degree or certificate program to be eligible to apply for financial aid, including student loans.

Enrolled less than half-time (6 units)

Students must be enrolled in Butte College at least half-time (6 units) for the entire loan term. Open Entry/Open Exit and late-starting courses must be added by freeze dates to be eligible.

Lack of Satisfactory Academic Progress

Students failing to meet required standards of Satisfactory Academic Progress (SAP) are not eligible to receive financial aid including loans.

Loans for students on Financial Aid Probation or Excess Units Petitions may be delayed or denied until their Satisfactory Academic Progress status is confirmed.

Students disqualified for lack of Satisfactory Academic Progress must be reinstated before they can apply for a loan, and may be subject to reduction or cancellation of loans.

Students must complete at least six (6) payable units with a "C" or better in the fall semester to be eligible for the spring loan portion. Spring-only loans will not be approved for students who were enrolled in fall and did not complete six (6) payable units.

Incarcerated Students

Incarcerated students are not eligible for Direct PLUS Loans.

-A student is considered to be incarcerated if serving a criminal sentence in a federal, state, or local penitentiary, prison, jail, reformatory, work farm, or similar correctional institution (whether it is operated by the government or a contractor).

-A student is not considered to be incarcerated if in a half-way house or home detention or is sentenced to serve only weekends.