PLUS Loans

The Parent Loan for Undergraduate Students, or PLUS, is a low-interest loan taken out by a parent to help their children finance their postsecondary education.  For each undergraduate child, a parent may borrow up to the difference between the student's education costs and other financial aid (scholarships or grants) the student may receive.  The cost of education may include tuition and fees, room and board, books, supplies, transportation, and miscellaneous expenses.  The school determines this amount.  First National Bank participates in the KeystoneBEST Loan Program, which is a reduced-cost loan program for Stafford and PLUS loans.  Click here for details.

PLUS Loan Requirements

Parents must:

• Be the dependent student's natural parent, adoptive parent, or in some cases, stepparent.
• Be a U.S. citizen or eligible non-citizen.
• Not be in default on an education loan or owe any education grant refunds.
• Be credit worthy.

Dependent Undergraduates must:

• Be a U.S. citizen or eligible non-citizen.
• Be accepted for enrollment at a participating school; or, if enrolled, be making satisfactory progress.
• Be classified as at least a half-time student and working toward a degree or certificate.
• Not be in default on an education loan or owe any education grant refunds.
• Be registered with Selective Service, if required.

Interest Rates & Fees

The interest rate on PLUS loans with a first disbursement on or after July 1, 2006 is a fixed rate of 8.5%. The interest rate on any existing PLUS loans will continue to be a variable rate, adjusted annually each July 1st, not to exceed 9.0%. You may be able to claim a federal income tax deduction for interest payments, as well as income tax credits. For further information, refer to the IRS Publication 970, available at www.irs.gov. According to federal regulations, a three percent origination fee and a one percent Federal Default Fee, also known as the guaranty fee, is deducted from each disbursement.

Repayment

Repayment of a PLUS loan begins no later than 60 days after it is fully disbursed.  A parent may take up to ten years to repay the loan. For PLUS loans first disbursed on or after July 1, 2008, parents can choose to defer payments until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. 

How to Apply for a PLUS Loan

STEP ONE: A parent must complete a Federal PLUS Loan Application and Master Promissory Note (MPN), which can be obtained at any of our branch offices.  You can also e-mail our Student Loan Officer at studentloans@fnbn.com and request that one be sent to you.  Follow the instructions that are included with the application.

STEP TWO: Return the "Lender Copy" of the MPN to AES/PHEAA Loan Guaranty Services in the postage-paid envelope that is provided.  

STEP THREE: A credit evaluation is performed, when AES/PHEAA receives the completed Master Promissory Note for your PLUS Loan.  Your final loan eligibility will be determined after your credit is reviewed and approved.  

The PLUS loan application can also be made electronically via the internet at www.aessuccess.org.  AES/PHEAA offers the automated PLUS Loan Pre-Approval Program, which allows applicants to receive an instant online credit response to PLUS pre-approval requests submitted while completing the online application process.  A parent can receive more than one loan under the PLUS MPN, over a period of ten years; however, a separate application must be completed for each dependent student.  Please check with the school or lender to see if a new application needs to be completed.  

The lender code for First National Bank is 809507.