PLUS Loan Application

Application

Need to complete your PLUS Master Promissory Note?

PLUS MPN

• Eligibility
• Promissory Note
• Disbursements
• Borrower's Responsibilities - Repayment
• Eligibility Chart

ELIGIBILITY

In addition to the Federal Direct Subsidized and Unsubsidized Loans available to student borrowers, parents of dependent students may borrow additional funds through the William D. Ford Federal Direct PLUS Loan program. The borrower must be a natural parent, adoptive parent, or stepparent (if his/her income and assets are considered in the Expected Family Contribution) of the dependent student. The lender is the U.S. Department of Education rather than a bank or credit union. Parents may borrow any amount up to the cost of education minus any other financial aid their son or daughter may receive. Eligibility will be based upon a satisfactory credit check.

To apply for a Federal Direct PLUS Loan you must complete a PLUS application. The application may be downloaded from the forms page of our website or it is available at the Office of Student Financial Assistance. The borrower must complete and sign the PLUS application and return it to the Office of Student Financial Assistance. The Free Application for Federal Student Aid (FAFSA) must also be submitted before a Federal Direct PLUS Loan Application can be processed. By completing a Federal Direct Plus Loan application, a parent borrower authorizes the Department of Education to review the borrower's credit record for each loan received.

Further information regarding this program can be found in the 2008-2009 Student Guide or by calling Borrower Services at 1-800-848-0979.

PROMISSORY NOTE

The Master PLUS Promissory Note (MPN) will simplify the processing of your loan(s). The Federal Direct PLUS MPN is a promissory note that can be used to make one or more Federal Direct PLUS Loans to a parent borrower to help pay for the educational costs of one dependent student for one or more academic years. In most cases, the parent may receive additional Federa Direct PLUS Loans for that student up to 10 years without completing a new Federal Direct PLUS MPN.

A parent who wants to borrow Federal Direct PLUS Loans for more than one dependent student must complete a separate Federal Direct PLUS MPN for each student. In addition, if each parent wants to borrow Federal Direct PLUS Loans for the same student, they must individually complete a separate Federal Direct PLUS MPN.

If it is determined that the parent has an adverse credit history and has obtained an endorser for a Federal Direct PLUS Loan, the Federal Direct PLUS MPN that the parent completes becomes a "single-loan" promissory note. No further Federal Direct PLUS Loans may be made under that Federal Direct PLUS MPN. The endorser is liable only for the specific loan that he or she has agreed to endorse.

DISBURSEMENT

The interest rate is fixed and is adjusted each year on July 1. The interest rate will never be higher than 9 percent. There is a 4 percent loan fee deducted from each disbursement of the PLUS loan. However a 1.5 percent rebate is being offered for borrowers. To obtain current interest rates click here.

The loan will be applied to your student's Bursar account. The loan must be disbursed in two equal amounts at the beginning of each term. A check is made payable to the student and mailed to the home of the parent borrower if the loan disbursement is in excess of the amount owed to the University.

Changing your loan amounts

You may cancel all or portions of your loan(s) after the funds have been credited to your student's Bursar account by notifying us in writing within 30 days after the date of the disbursement notice.

Contact the Office of Student Financial Assistance to determine if eligibility for increased funding is available. Please note that you may borrow any amount up to your student's cost of attendance minus any other financial aid your student may receive for the academic year.

REPAYMENT

The parent is responsible for repayment of this loan. Effective July 1, 2008, parents have the option of beginning repayment either 60 days after the loan is fully disbursed, or six months after the dependent student on whose behalf the loan was obtained ceases to be enrolled on at least a half-time basis.

The Federal Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Federal Direct loan borrowers may choose between the standard, extended, or graduated repayment plans. Repayment of PLUS loans are managed by the Direct Loan Servicing Center. Parent borrowers with Direct PLUS Loans first disbursed on or after July 1, 2008 should contact Direct Loan Servicing Center at 1-800-848-0979 if they wish to delay repayment on their Direct PLUS Loans until six months after the student has ceased at least half-time enrollment.

You will have from 10 to 30 years to repay depending upon the repayment plan chosen by the parent. To estimate an amount of repayment based on the standard, extended, or graduated repayment plans, you may access the Federal Direct Loan's interactive repayment calculator. Calculations are estimates and the values may not reflect the actual amount computed by the Direct Loan Servicing Center.

Parents who are experiencing difficulty making their loan payments, may be able to postpone payments through a deferment or forbearance request.

ELIGIBILITY CHART