Loans for Parents

What is a PLUS Loan?

A PLUS Loan is a Parent Loan for Undergraduate Students. This loan is available to creditworthy parents and stepparents of dependent undergraduate students who are enrolled in an institution of higher education on at least a half-time basis.
Applicants must be U. S. citizens or permanent residents.

How do I apply for a PLUS Loan?

1.	File the FAFSA for the appropriate school year. Go to www.fafsa.ed.gov to file electronically. For a loan during the 2009-2010 school year, file the 2009-2010 FAFSA. The school code for Santa Barbara City College is 001285.
2.	Complete the student's financial aid file by complying with document requests from the Financial Aid Office.
3.	Download the Parent Loan (PLUS) Request Form HERE or request the Parent Loan (PLUS) Request Form from the Financial Aid Office. We will confirm your student has filed a FAFSA and has completed his/her file before sending the Parent Loan (PLUS) Request Form to you.
4.	Submit the completed Parent Loan (PLUS) Request Form to the SBCC Financial Aid Office by either mail or fax. Our fax number is 805.564.1893. Our mailing address is Santa Barbara City College, Financial Aid Office, 721 Cliff Drive, Santa Barbara, CA, 93109.

PLEASE NOTE! You must pick a lender! The Financial Aid office cannot process your parent loan request until a lender has been chosen by the borrower.

Which lender can I choose?

Parent borrowers may choose any lender that participates in the Federal PLUS Program that will loan money to the parent at this college. The following link lists lenders the majority of our parent loan borrowers used in 2008-09 that still participate in the FFELP program at Santa Barbara City College for 2009-10. Santa Barbara City College does not specifically endorse any lender on this list.

Lender List

Optional: The parent borrower can ask the lender of their choice to be preapproved for a PLUS Loan. As noted, this is an optional step, but can help expedite your loan application.

What happens next?

The PLUS loan will be certified by the Financial Aid office with 10-14 days of receipt of the Parent Loan (PLUS) Request Form. Within 24 hours of PLUS certification, the parent borrower will receive an e-mail notifying the parent that their Master Promissory Note (MPN) is ready to be completed online; the notification will include instructions on completing the MPN. Parent borrowers will need a U.S. Department of Education personal identification number (PIN) in order to electronically sign the MPN. If the parent borrwer does not have a PIN, a pin can be applied for online at www.pin.ed.gov

How much can I borrow?

The amount borrowed cannot exceed the student’s budget or cost of attendance as determined by the school. The total maximum annual loan limit equals the student’s total cost of education minus any other aid received, including student loans.

To determine your student’s Cost of Attendance, please select the appropriate budget from our website under Cost of Attendance.

What is the interest rate?

For PLUS loans disbursed 7/01/09 to 6/30/10,
the interest rate is fixed at 8.5%.
For PLUS loans disbursed 7/01/06 to 6/30/09,
the interest rate is fixed at 8.5%.

How do I repay the PLUS Loan?

Repayment begins 60 days after final disbursement of the PLUS Loan, unless the parent has applied directly with their lender for a grace period based on their student being enrolled at least half-time. The repayment term is up to 10 years (excluding any periods of deferment and forbearance). The minimum monthly payment is $50.

Are there any loan fees?

Yes. The origination fee is 3% of the total borrowed and the default fee is 1% of the total amount borrowed, for a total of 4% PLUS loan fees.
Is there a deadline to apply for a PLUS Loan?

Yes. Loan applications will be accepted throughout the school year. Call the Financial Aid Office at (805) 730-5157 or check Deadlines for specific dates when they are due.

Can I apply for the PLUS Loan on-line?

No. At SBCC, the process must be completed on the Parent Loan (PLUS) Request Form provided by our office.

When will I receive my loan money?

Generally, your loan will be disbursed in two equal checks, paid out during the loan period you have selected. NOTE: In accordance with Federal regulations, no loan money may be released sooner than ten days prior to the beginning of a semester.

Academic Year Loans:
Paid in equal halves in Fall and Spring. The first half of a loan is usually ready approximately two to three weeks following completion of the Master Promissory Note. The second half of academic year loan is usually ready to disburse at the beginning of Spring semester. Other dates may apply.
One-Semester Loans:
Paid in one disbursement for the term. The loan disbursement is usually ready approximately two to three weeks following completion of the Master Promissory Note. Other dates may apply.
PLEASE NOTE: Loan money will probably not be received by you in time to make rental deposits, reserve dorm rooms and/or pay rent prior to the beginning of classes. Please be aware that you may have to make other arrangements to meet these obligations.

How do I receive my loan money?

The loan funds are sent electronically to the school by the lender and directly deposited to the school bank account. Once SBCC is notified of the deposit, we confirm your student is currently enrolled in at least 6 units and then issue a check from the school's bank account payable to the parent borrower. The check is mailed to the parent address given by the parent on the Parent Loan (PLUS) Request Form.

PLEASE NOTE! PLUS Loan checks are always mailed by SBCC to the parent. We will not release PLUS checks to students. Please note we are not able to deposit PLUS checks into student accounts.

Can I be denied a PLUS Loan?

Yes. Since this is a credit-based loan, depending on the credit status of the parent borrower, lenders can deny a PLUS Loan application.

In addition, your student must meet SBCC’s Satisfactory Academic Progress (SAP) Policy each semester for your loan to be funded. Please review our SAP Policy.

What can I do if my PLUS Loan application is denied?

You can appeal the decision of the lender or try applying through a different lender.
If you do not want to appeal or your appeal is denied, your dependent student has the option of applying for $4,000 maximum in an unsubsidized Stafford Loan. To do this, we need the following documents:
- a copy of the lender denial letter,
- a signed letter from you stating you will not appeal the denial of the lender,
- a letter from your student asking to borrow the additional unsubsidized loan,
- Loan Increase Form completed by your student.
  
  If you have additional questions, please contact our office by emailing your financial aid advisor or by calling the Financial Aid office at (805) 730-5157.