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PLUS

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PLUS

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.

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.

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.

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.

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.

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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