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.
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.
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.
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.
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.
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.
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.
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.
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.
- ·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.
- ·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.
- · $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.
- · 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
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.
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.
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.
You may view information on available repayment plans online by going to www.studentloans.gov and selecting Repayment Plans and Calculators.
The Federal Student Aid Website at www.nslds.ed.gov. You will need to log in with your FSA username and password.
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.
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?
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.
• 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.
You may contact:
Student Loan Office
Phone: 918.495.6385 or 918.495.6368
Office hours: Monday through Friday, 9am-4pm
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.
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.
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.
Can the Master Promissory Note that I signed for my Direct Subsidized/Unsubsidized Loans be used for my student’s Direct PLUS Loans?
No. The parent must login to www.studentloans.gov and sign a separate MPN for the PLUS loan.
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).
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.
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?
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.
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.
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.
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.
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.