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Transcript: How Much of the Parent PLUS Loan to Borrow?

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This video will show you step-by-step 

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how to calculate the amount of 

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the PLUS Loan that you should borrow.

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Before we can get started, 

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we need to grab some information from 

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the Student Aid Summary. 

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Let's log in to eLion at 

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elion.psu.edu

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Open the "Financial" menu on the left side of the page 

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and click on the link "Student Aid Summary." 

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Select the academic year 

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and click "Continue." 

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Then click on "View Aid" 

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to show the Student Aid Summary.

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This is an example of a Student Aid Summary that

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I made just for this presentation.

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Yours may not look exactly the same 

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but it will be similar. 

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There are two things we need to write down from this page, 

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the Estimated Total Cost of Attendance and Total Aid.

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Your student's financial aid will be listed at the top 

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of their Student Aid Summary 

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under the heading, Types of Aid. 

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If you are applying for a PLUS Loan 

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for the fall and spring semesters, 

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write down the "Total Aid" under the Total column. 

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Otherwise, write down 

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"Total Aid" under the fall or spring column. 

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If you request a loan 

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for both the fall and spring semesters, 

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you will receive two equal disbursements. 

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The first disbursement 

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will be credited on the fall tuition bill 

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and the second disbursement 

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will be credited on the spring tuition bill. 

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The lower half of the Student Aid Summary 

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lists your student's billable and non-billable expenses. 

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Write down the "Estimated Total Cost of Attendance" 

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under the fall, spring, or total column. 

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For the purpose of this demonstration, 

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I'm going to use $13,400 as the Total Aid 

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and $32,200 for the Estimated Total Cost of Attendance.

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Now we need to open up 

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the Parent PLUS Worksheet - 

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there's a link on the same page as this video. 

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You'll need Adobe Reader to open the worksheet. 

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If you don't have it, you can download it 

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for free at get.adobe.com/reader

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The first thing we want to figure out is 

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our Maximum Loan Eligibility.

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The Maximum Loan Eligibility is simply

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 the maximum amount of the PLUS Loan 

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that you are eligible to borrow. 

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The important thing to remember though 

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is that you may not actually need to borrow the maximum amount.  

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Ok, let's open the worksheet 

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and figure out what our 

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Maximum Loan Eligibility is. 

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For the moment, 

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we're only going to work with Part One. 

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From the Student Aid Summary, 

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we wrote down that the 

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Estimated Total Cost of Attendance was $32,200. 

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I'm going to write in $32,200 in this first line 

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while you write in your number. 

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And let's do the same for the Total Aid. 

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Then, subtract the Total Aid from 

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the Estimated Total Cost of Attendance. 

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$18,800 is my Maximum Loan Eligibility. 

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Part 2 of the Parent PLUS Worksheet 

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may or may not be relevant to you, 

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depending on whether you plan to 

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contribute any out-of-pocket funds. 

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I'm going to carry over the $18,800 from Part 1 

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and write in the $2,000 

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I'm going to pay out-of-pocket.

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So the amount I need to borrow is $16,800. 

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Part 3 of the worksheet is 

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accounting for the origination fee 

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in the amount to borrow. 

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To do that you

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divide the Amount Needed to Borrow by .95708. 

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In rounding up to the nearest dollar, 

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the amount I need to request to borrow is $17,553. 

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To quickly recap, 

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we arrived at this figure by 

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subtracting the Total Aid from the Estimated Cost of Attendance 

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to determine the Maximum Loan Eligibility. 

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Then we subtracted any personal contributions from 

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the Max Loan Eligibility 

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to get the Amount Needed to Borrow. 

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Then we divided that by the origination fee percentage. 

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This final number is what you'll want to enter on 

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the PLUS Request Form in eLion. 

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For more information on the Parent PLUS Loan, 

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please visit the "Types of Aid" section of our website at

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studentaid.psu.edu/types-of-aid/loans/about-parent-PLUS

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To learn how to access the Parent PLUS Request Form on eLion

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 visit the tutorial section of our website and 

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watch the video "How to Apply for the Parent PLUS Loan"

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