Most families need to go beyond the direct payment to the College or the payment plan to help meet their financial responsibility for the cost of a Holy Cross education. We advise first and foremost that all families maximize their eligibility for all federal loans in the form of the Federal Direct Stafford Loan and the Federal Direct Parent PLUS Loan before using any other credit based financing.
The Federal Direct PLUS Loan
The Federal Direct PLUS Loan is a parent loan product where the Federal Government is the lender. The interest rate for the 2018-2019 academic year is set at a fixed 7.595 percent with options to enter immediate repayment or to defer repayment of interest and principal until after the student graduates or ceases to be enrolled at least half time. There is a 4.264 percent origination default fee at the time of disbursement. The net result is that the loan proceeds that are credited to the student account are reduced by 4.264 percent of the principal. For loans with a first disbursement on or after October 1, 2018 and before October 1, 2019, the loan fee will be 4.248 percent. A Free Application for Federal Student Aid (FAFSA) must be completed for the student in order for a parent to apply for the Federal Direct PLUS Loan. For additional information on the Federal Direct PLUS Loan please visit Federal Student Aid's official website at https://studentaid.gov.
To apply, complete the Holy Cross Federal Direct PLUS Loan Request Form (PDF) and mail or fax it directly to the Financial Aid office. The request form will allow the College to originate the loan with the Federal Government who will then perform a credit check to ensure that the borrower does not have a negative credit history. Once the parent borrower is notified of the loan approval he/she will be directed to the Direct Loan website to sign a Master Promissory Note.
Please note that the Financial Aid office will not begin to process PLUS Loan Request Forms until after July 1.