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Loans

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Loans

What is the interest rate on the Alternative Loan?

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The interest rate for the Alternative loan is dependent on the creditworthiness of the borrower and co-signer. The interest rate may be variable (fluctuates quarterly with the credit market) or fixed, depending on the lender. Several lenders offer borrowers the option of selecting a fixed or variable rate loan.

What is an Alternative Loan?

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The Alternative Loan is a credit-based private (non-federal) student loan where the student is the borrower. Alternative Loans help pay for educational expenses up to the cost of attendance minus all other financial assistance. Interest is charged the life of the loan.

What are the eligibility requirements?

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Students must be U.S. citizens or permanent residents. Students generally must apply with a creditworthy cosigner. International students must apply with a U.S. citizen co-signer, must have U.S. mailing address and valid social security number.

What is the miminum amount I can borrow?

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Generally, the miminum loan amount allow by our recommended lenders is $1000.

Can I borrow if I am non-degree seeking?

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Most of our recommended lenders provide loans to students who are non-degree seeking.

Can I borrow if I am enrolled less than half-time?

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Yes. Our recommended lenders provide loans to students who are enrolled less than half-time.

Can I borrow to cover charges for a prior enrollment period?

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Yes. Most of our recommended lenders provide loans to cover balances for a prior enrollment period if fewer than 6 months has passed from the prior enrollment period end date to the first disbursement of the loan.

Can I borrow if I am not making satisfactory academic progress?

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Yes. Most of our recommended lenders provide loans to students who are not making satisfactory academic progress.

Are there fees associated with the Alternative loan?

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Most of our recommended lenders have zero origination, disbursement or early repayment fees.

Can I cancel an Alternative Loan after I have applied?

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Yes. You may cancel your Alternative Loan during the Rescission Period (This period is 7 to 10 business days from the date the lender mailed you the Final Disclosure Notice and is prior to the first disbursement) without penalty. After your loan is disbursed, you may request the school cancel all or part of your loan within certain timeframes.

Can I postpone Alternative loan payments while I am in school?

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Most of our recommended lenders require no payment while you are enrolled in school and offer a 6 month grace period after you graduate or discontinue enrollment.

How do I apply for an Alternative loan?

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You may apply with a lender from our Recommended Lender List by going to http://www.oru.edu/financial_assistance/ You may choose a lender from the list provided. You will be re-routed to the lender’s website, where you can begin the application process.

Can I get an alternative loan to cover charges for a prior enrollment period?

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Yes. Most of our recommended lenders provide loans to cover balances for a prior enrollement period end date to the first disbursement of the loan.

When will my alternative loan be posted to my award?

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After your loan has been lender-approved, we will receive notification from the lender of the approval and within three business days the private loan should be posted to your award. Please be aware that loans approved between Christmas and New Year’s Day will not be posted until after the holidays.

How do I resolve my defaulted loan?

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The resolution of defaulted loans takes place between the student and the National Student Loan Data System. Go to www.nslds.ed.gov to verify lender information; Once default has been cleared with lender, submit default clearance letter to the Financial Aid Office.

If I have a defaulted student loan, will I be able to receive another loan?

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Yes, after you have restored your Title IV aid eligibility either through loan restoration by making six consective monthly payments or through loan consolidation.

Can I cancel a Direct Stafford Loan after I’ve applied?

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Yes. Before your loan money is disbursed (paid out), you may cancel all or part of the loan by notifying your school. After your loan money is disbursed, you may cancel all or part of your loan within certain timeframes. For details, refer to the Borrower’s Rights and Responsibilities Statement that accompanies your MPN.

Can I postpone Stafford loan payments while I am in school?

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Yes. While you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment that allows you to postpone payments on your Direct Stafford Loan until you graduate or drop below half-time status.

Do I need to apply for an in-school deferment each year?

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Generally, the school will certify your expected graduation date with the Dept of Education. The in-school deferment on your Direct Stafford Loan will then remain in effect until you graduated or drop below half-time enrollment status.

How do I apply for a Direct Stafford Loan?

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You must complete the Free Application for Federal Aid (FAFSA) http://www.fafsa.ed.gov/.  Once you are awarded loans, you must then complete a Direct Loan Stafford Master Promissory Note (MPN) and complete Entrance Counseling Interview.

How do I complete my MPN?

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To complete an MPN online, you will be required to use your FSA username and password to log into studentloans.gov. If you do not have an FSA username and password, you may request one at http://fsaid.ed.gov.

 

How much will I have to pay each month?

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Your monthly payment amount on a Direct Stafford Loan will vary depending on the repayment plan that you choose and how much you borrowed. You can obtain estimated monthly payment amounts for different debt levels or for other repayment plans by contacting the Direct Loan Servicing Center at www.studentloans.gov or 1-800-848-0979.

How soon do I have to begin making payments after my in-school deferment ends?

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Once you are no longer enrolled at least half time in an eligible program, you will receive a 6-month grace period on your Direct Subsidized and Unsubsidized Loans during which you are not required to make loan payments. The government will no longer subsidize or pay the interest on behalf of students during the six month grace period after graduation or when students are no longer enrolled at least half-time. This is effective for new Direct Subsidized Loans disbursed on or after July 1, 2012. You must begin repayment at the end of your grace period.

If I’m a dependent student how much can I borrow?

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  • ·1st year undergraduate: $5500 maximum ($3500 subsidized; $2000 unsubsidized)
  • ·2nd year undergraduate: $6500 maximum ($4500 subsidized; $2000 unsubsidized)
  •  ·3rd/4th year undergraduate: $7500 maximum ($5500 subsidized; $2000 unsubsidized) ·The total amount that can be borrowed as a dependent undergraduate is $23,000 subsidized and $8000 unsubsidized.

If I’m an independent student how much can I borrow?

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  • ·1st year undergraduate: $9500 maximum ($3500 subsidized; $6000 unsubsidized)
  • ·2nd year undergraduate: $10,500 maximum ($4500 subsidized; $6000 unsubsidized)
  • ·3rd/4th year undergraduate: $12,500 maximum ($5500 subsidized; $7000 unsubsidized) ·The total amount that can be borrowed as a dependent undergraduate is $23,000 subsidized and $34,500 unsubsidized. ·Graduate/Professional: $20,500 unsubsidized ·For loans borrowed prior to July 1, 2012, the total amount borrowed as a graduate/professional student can not exceed $65,500 subsidized and $73,000 unsubsidized. The total borrowed between both loans can not exceed $138,500. Please note: Graduate and Professional students will NOT be eligible for Direct Subsidized Loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012.

Are there fees associated with a Direct Stafford Loan?

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Yes. The U.S. Department of Education charges a loan origination fee of 1% of the principal amount of each Direct Stafford Loan. This fee is deducted proportionately from each disbursement of your loan.

What is the interest rate on the Direct Stafford Loan?

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The interest rate on Direct Subsidized Loans made to undergraduate students is a fixed 3.76%. The interest rate on the Direct Unsubsidized Loan is also 3.76%.

What are the aggregate total limits for direct subsidized and unsubsidized loans?

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  • · $31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan (no more than $23,000 may be subsidized)
  • · $57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized)
  •  · $138,500 for graduate/professional students (no more than $65,500 may be subsidized). [Please note:] the government has eliminated eligibility for the Direct Subsidized loan for Graduate and Professional students made for periods of enrollment (loan periods) beginning on or after July 1, 2012.

Can my Stafford loans be unevenly distributed between the fall and spring semesters?

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No. Under the Federal Direct Loan Program (FDLP), your Stafford loan is to be evenly split between the fall and spring semesters. There are two exceptions. (1) If your grade level changes in spring. (2) If you attended summer for the first time and used less than the even split awarded for summer.

I did not complete my Master Promissory Note or Entrance counseling before the semester ended. Can I still receive my Stafford loans?

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No. Under the Federal Direct Loan Program (FDLP), three steps must occur before a loan is considered eligible for FDLP funds: (1) an accepted FDLP origination record; (2) a signed Master Promissory Note; (3) an accepted actual disbursement (payment). These must occur before the semester ends.

What are the eligibility requirements?

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  • · You must have a high school diploma or GED certificate.
  • · You must be enrolled at least half-time and be working toward a degree or certificate in an eligible program. · You must be a U.S. citizen or eligible noncitizen.
  • · You must have a valid Social Security Number.
  • · You must register with Selective Service if required.
  • · You must not be in default on any federal education loans or owe an overpayment on a federal education grant.
  • · You must maintain satisfactory academic progress once in school.
  • · You must complete the Free Application for Federal Aid (FAFSA). http://www.fafsa.ed.gov

What does Direct Lending mean?

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Direct lending refers to loans made and processed  directly through the U.S. Department of Education as the lender.  All repayments are made directly to them.

What is a Master Promissory Note (MPN)?

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The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s).  When you borrow a Direct Loan for the first time, you must complete an MPN.

What is a subsidized Direct Stafford loan?

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A subsidized Direct Stafford loan is a loan from the Department of Education to students who can demonstrate financial need. The interest for the subsidized loan is paid or subsidized by the Department of Education, while you are in school at least 1/2 time. The government has eliminated the subsidy during the six month grace period after graduation or when students are no longer enrolled at least half-time so that the student will incrue interest during this six month grace period. This is effective for new Direct Subsidized Loans disbursed on or after July 1, 2012.

Who is eligible for a Direct Subsidized Stafford loan?

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Undergraduate students who have demonstrated financial need as determined by the completed FAFSA. The government has eliminated eligibility for the Direct Subsidized loan for Graduate and Professional students made for periods of enrollment (loan periods) beginning on or after July 1, 2012.

What is an unsubsidized Direct Stafford loan?

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An unsubsidized Direct Stafford Loan is a loan from the Department of Education for students not based on a demonstrated financial need.  For an unsubsidized loan, the interest is not subsidized (paid) by the Department of Education. Instead, the interest accrues and from the point the loan is originated the student is responsible for paying the accrued interest. The student can pay the interest while in school or during a period of deferment or forbearance.

What is Entrance Counseling?

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Entrance Counseling is an electronic document available on VISION that provides an overview of federal loans and information to help the student understand their rights and responsibilities regarding their loans. It is a federal requirement that a student read and complete the Entrance Counseling before the student’s loans will disburse.

What repayment plans are available?

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You may view information on available repayment plans online by going to www.studentloans.gov and selecting Repayment Plans and Calculators.

Will I need to complete a MPN every year?

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In most cases, once you have submitted the MPN and it has been accepted, you will not have to complete a new MPN for future loans you receive. You may borrow additional Direct Loans on a single MPN for up to 10 years.

Will I receive a disclosure statement?

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Yes. You will receive a disclosure statement that gives you specific information about any loans that the school plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.

I am interested in consolidating my loans. Who should I contact?

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The Federal Student Aid Website at www.nslds.ed.gov. You will need to log in with your FSA username and password.

Who do I contact if I have any questions about my disbursed Direct Stafford Loans?

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Contact the Department of Education Direct Loan Servicing Center at 1 800 848 0979 (TTY 1 800 848 0983) or online at www.studentloans.gov.  Visit the web site or call to get loan account information, request a deferment or forbearance, download a deferment or forbearance request form, change repayment plans, make online payments, set up automatic payments, and much more.

I just completed my Entrance Counseling and/or Master Promissory Note (MPN). Why is it not reflecting on my financial aid documents screen as received?

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It takes approximately 3-5 business days for our office to receive your Entrance Counseling and/or MPN information from the U.S. Department of Education and automatically updated into our system.

How do I apply for a PLUS Loan?

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To apply for a Parent PLUS Loan, the parent borrower must sign in to https://studentloans.gov using the parent’s SSN, first two characters of parent’s last name, parent’s date of birth and parent’s FAFSA Pin number. Select PLUS Loan Request (Application) to complete.

I completed my Entrance Counseling and/or Master Promissory Note (MPN). Why is it not reflecting on my financial aid documents screen as received?

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There are a number of reasons why your file may not be updated.

(1)You may not have accepted your loan awards on VISION. The Entrance Counseling loan requirement is generated on your account once you accept your awards.

(2) You may have entered incorrect information on your loan documents.

(3) You may have completed your loan documents under your parent’s login at www.studentloans.gov rather than your login.

(4) Your loans may not have been originated and transmitted to the Department of Education. The MPN requirement status does not update as received until after your loans are originated and a response is received from the Department of Education.

How much can I borrow with the Direct PLUS Loan?

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A parent may borrow up to the total cost of attendance minus all financial aid and resources received by the student.

Where do I submit a request for an in-school deferment?

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Your request for in-school deferment can be made with the Registrars office.

What are the eligibility requirements?

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• A parent must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application.

• The student must be a dependent childwho is enrolled at least half-time at a school that participates in the Direct Loan Program. For financial aid purposes, a student is considered dependent if he or she is under 24 years old, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid (FAFSA) is submitted.

• If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.

• The parent and their dependent student must be U.S. citizens or eligible noncitizens and must not be in default on any federal education loans or owe an overpayment on a federal education grant.

• Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done) or they must apply with an endorser.

I just completed my Entrance Counseling and/or Master Promissory Note (MPN). Why is it not reflecting on my financial aid documents screen as received?

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It takes approximately 3-5 business days for our office to receive your Entrance Counseling and/or MPN information from the U.S. Department of Education and automatically update it in our system.

What is the interest rate on the PLUS loan?

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The interest rate for Direct PLUS Loans is a fixed rate of 6.31%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan’s first disbursement.

Where do I submit a request for an in-school deferment?

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Your request for in-school deferment can be made with the Registrars office.

Is there a loan fee?

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Yes. The U.S. Department of Education charges a loan origination fee of 4.276% of the principal amount of each Direct PLUS Loan. This fee is deducted before each disbursement of your loan, so the loan amount you actually receive will be less than the amount you have to repay.

Who should I contact with questions regarding my Perkins Loan?

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You may contact:

Student Loan Office

Phone: 918.495.6385 or 918.495.6368

Email: perkinsloans@oru.edu

Office hours: Monday through Friday, 9am-4pm

 

What is a Master Promissory Note (MPN)?

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The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s). MPN’s can be accessed on the studentloans.gov website.

How do I complete my Master Promissory Note?

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To complete a parent PLUS Loan MPN online, the parent will be required to use their Department of Education-issued FAFSA username and password. If you do not have a username and password, you may request one from http://fsaaid.ed.gov. Parents are to sign in at www.studentloans.gov using their FSA username and password. Under Master Promissory Note Menu, select “Complete MPN” and then choose Parent PLUS MPN. [Please Note:] the same parent who completes the Parent PLUS Application must also complete the Parent PLUS Loan MPN.

Will I need to complete a Master Promissory Note every year?

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In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans you receive unless the PLUS loan was endorsed. The MPN for a PLUS loan that was endorsed is only valid for one loan. Otherwise, you may borrow additional Direct Loans on a single MPN for up to 10 years.

What is considered to be an adverse credit history?

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You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within 5 years of the date of the credit report, you have had a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Federal Student Aid debt (for example, a Direct Loan or Federal Stafford loan).

What are my options if I have an adverse credit history?

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A parent may apply for the Direct PLUS loan with an endorser (co-signer), who does not have an adverse credit history. An endorser is someone who agrees to repay the loan if you do not repay it. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to the Department of Education’s satisfaction that there are extenuating circumstances related to your adverse credit history.

If the parent has an adverse credit history but cannot find an endorser for the Direct PLUS Loan, can I receive additional Direct Unsubsidized Loan funds?

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Yes. Dependent students whose parents have applied for the Direct PLUS Loan but were denied credit are eligible to receive additional Direct Unsubsidized Loan funds. Currently, students can receive $4000 annually for freshmen and sophomores and $5000 annually for juniors and seniors.

What is a Parent PLUS Loan?

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Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. Applications for Parent PLUS Loans can be made on studentloans.gov

How to Apply for a Parent PLUS Loan

1)  Go to studentloans.gov enter parent’s ss# and parent’s FAFSA pin #

2) Click on Request a PLUS Loan

3) Choose Parent PLUS not Graduate PLUS

4) Fill out application and run the credit check at the end of the application (the credit check is part of the application process)

In about 30 seconds or less you will be notified of the results.  If you are awarded the loan, please have the parent sign the PLUS Master Promissory Note.  (MPN)

If you are declined the Parent PLUS based on credit, we will automatically increase the students unsubsidized loan by 4000.00 for the year.  The student will need to go into their VISION account and accept the full amount of unsubsidized loan if they want it.

My parent applied for the Parent PLUS loan a week ago.Why is the Direct PLUS Loan Request not reflected as received in my financial aid file?

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There may be several reasons why the Direct PLUS Loan Request status is not update. (1) Your parent may have entered incorrect student information (SSN, Birthdate, Name). (2) Your parent may have only completed the Direct PLUS Loan Master Promissory Note (MPN). Applying for the PLUS loan is a two step process. Parents must complete the Direct PLUS Loan Request as well as the PLUS MPN. (3) The Direct PLUS Loan Request may have been completed using the student’s login information at www.studentloans.gov. The parent must login using parent’s SSN, parent’s Date of Birth, parent’s FAFSA pin and first two characters of the parent’s last name.

Can I postpone PLUS loan payments while I’m in school?

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Yes. A parent PLUS borrower may defer repayment of a Direct PLUS Loan while the student, for whom you obtained the loan, is enrolled at least half time (enrolled a minimum of 6 hours), and for an additional 6 months after the student graduates or drops below half-time enrollment. You must separately request each deferment period on the Direct Plus Loan application.

Can I cancel a PLUS Loan after I’ve applied?

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Before your loan money is disbursed (paid), you may cancel all or part of the loan by notifying your school. After your loan money is disbursed, you may request your school cancel all or part of your loan within certain timeframes. For details, refer to the Borrower’s Rights and Responsibilities Statement that accompanies your PLUS MPN.

When do I have to begin repaying a Direct PLUS Loan?

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The repayment period for each Direct Parent PLUS Loan you receive begins 60 days after your school makes the last disbursement of the loan. However, you may request to defer  repayment of Direct PLUS Loans first disbursed on or after July 1, 2008, while the student for whom you obtained the loan is enrolled at least half time, and for an additional 6 months after the student graduates or drops below half-time enrollment (6 hours). You must separately request each deferment period. Request for deferments are noted on the application, which can be found at studentloans.gov.

How long do I have to pay back the Direct Parent PLUS loans?

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Typically, you will have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You can choose to repay your PLUS loan using the Standard, Extended, or Graduated repayment plan. The Direct Loan Servicing Center will notify you of the date your first payment is due. If you do not choose a repayment plan, the Dept. of Education will place you on the Standard Repayment Plan, with fixed monthly payments for up to 10 years. Most Direct Loan borrowers choose to stay with the Standard Repayment Plan, but there are other options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period.

Will I receive a disclosure statement?

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You will receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.

Does my parent have to complete Entrance Counseling?

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No.  Parent Direct PLUS Loan borrowers do not have to complete entrance counseling.

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