Parent Loans

Alternative/Private Parent Loans

Families may choose to take additional loan funding to assist them in covering their student's educational cost. One option is to investigate alternative or private loans. These loans are not backed by the federal government and are administered by outside/private companies. These parent loans have variable interest rates based on the credit worthiness of the borrower.

To help navigate the process of selecting a parent loan, we encourage families to use ELM Select. This is a resource that will enable families to compare various loan products and borrower benefits. Lenders are listed based upon their historical lending with our parents. If you wish to use another lender that is not on this list, you have the right to do so. 

2024-2025 Federal Direct PLUS Program

Application Instructions and Request Form: 2024-2025 PLUS Request Form

Federal Direct PLUS

(Parent Loan for Undergraduate Students) is a loan program for parents to help finance the cost of their child’s education. The loan is through the Department of Education and is funded by the United States Treasury. The interest rate and origination fee are determined annually by the federal government. Reference this link for these figures: https://studentaid.gov/understand-aid/types/loans/plus/parent

The maximum amount a parent can borrow is verified by the College. It is determined by the total cost of attendance minus any financial aid awarded. Please refer to your financial aid package for these amounts.

Repayment of principal and interest begins after the second disbursement and will be arranged with your federal loan servicer. You may be eligible for payment deferment if you meet certain requirements determined by the Department of Education.  More information will be available at the time you complete the online Department of Education application and can be found at https://studentaid.gov/understand-aid/types/loans/plus/parent

We will begin processing 2024-2025 Federal Parent PLUS loans on or about July 15, 2024. The Department of Education requires that a credit check be performed. Once approved, the credit decision is valid for 180 days and must still be in effect at the time of first disbursement. Because of this time schedule, you should not apply for the loan earlier than June 1, 2024.

If a parent is denied a Federal Parent PLUS loan, the student may qualify for additional funds from the Federal Direct Unsubsidized loan program. The student will have to make the request for the additional funds in writing to the Financial Aid Office. Additional information regarding the Federal Direct Unsubsidized loan program can be found at: https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized.

Disbursement of Funds

Disbursement schedules are dictated by the Department of Education. The PLUS loan is payable in two disbursements, one-half of the total at the beginning of each semester, but not earlier than 10 days before the start of classes for each semester.

If you apply for a one semester only loan (i.e. fall only or spring only), one-half of the loan proceeds will be credited to your account at the beginning of the specified semester and one-half will be credited midway through that semester.

Here are two charts: 2024-2025 Cost of Education and Calculating the Bill. This information will help you determine what you owe the Accounting office and what you may be eligible for in a PLUS loan.

Connecticut College Student Budget, 2024-2025

Calculating the Bill