|
|
Federal Parent Loan for Undergraduate Students (PLUS)
The Financial Aid Office (FAO) assists students by awarding financial aid to help pay for post-secondary education. Financial aid is awarded as grants, scholarships, loans and student employment from various federal, state, institutional and private sources. The Federal Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent students to provide the expected parent contribution for their student's educational expenses, and/or make up the difference between the cost of attendance and the financial aid awarded the student. This loan is not based on financial need. The parents pay the costs for this loan, and interest charges and repayment begin upon disbursement. The Financial Aid Office is responsible for determining student and parent eligibility, awarding the loan, ensuring a Master Promissory Note is completed by the borrower, and disbursing federal funds to the borrower.
ELIGIBILITY
The parent borrower and their student must meet the following criteria to receive a Federal PLUS Loan.
The student and parent borrower must:
• Be U.S. citizens or other eligible status (permanent resident).
• Not owe a defaulted student loan or a federal grant repayment.
• Meet other requirements as applicable.
The student must:
• Be in compliance with the college's Satisfactory Academic Progress Policies.
• Be enrolled at least half-time. (Audited courses are not eligible to determine enrollment status.)
The parent borrower must:
•Not have an adverse credit history.
LOAN AMOUNTS
Parents may borrow a Federal PLUS Loan for an amount up to the student's educational expenses minus other financial aid.
LOAN FEES
A default fee not to exceed 1% and a federal loan origination fee of 3% of the loan amount may be deducted from the Federal PLUS loan proceeds prior to disbursement. Parents are notified of this fee at the time of the loan approval and loan disbursement amounts reflect the deduction of this loan fee.
INTEREST, REPAYMENT AND DEFERMENTS
Federal Plus loans disbursed on or after July 1, 2006 have a fixed interest rate of 8.5% for the life of the loan. Plus loans disbursed on or before June 30, 2006 have a variable rate, adjusted annually on July 1, and cannot exceed 9% over the life of the loan. Interest begins upon disbursement and repayment begins within 60 days of disbursement. Some deferments and various repayment options are available and in some cases interest may be capitalized. The U.S. Department of Education contracts a servicer to handle the collection of loans. Parents should contact the servicer or the Financial Aid Office for more information on interest, repayment and deferments. Federal PLUS Loan information is also available at: http://studentaid.ed.gov
APPLICATION PROCEDURES
In order to apply for the majority of financial aid programs, the student must complete and submit the free application for Federal Student Aid (FAFSA) for the academic year he or she plans to attend.
Although completion of the FAFSA is not required for a parent to receive a PLUS Loan the Financial Aid Office strongly encourages students to file the FAFSA. Filing is easiest if done electronically at the U.S. Department of Education’s web site (www.fafsa.ed.gov). Students and parents of dependent students may request a Personal Identification Number (PIN) at the U.S. Department of Education’s web site (www.pin.ed.gov). The PIN serves as an electronic signature, which significantly improves the processing time. A paper signature page must be downloaded, signed and mailed for students or parents who don't have a PIN.
PLUS LOAN PROCEDURES
- An Application for a Federal PLUS Loan and a completed Master Promissory Note for a Federal PLUS Loan is required. The Application for a Federal PLUS Loan is completed by both the student and the parent, and submitted to the Financial Aid Office.
- The Financial Aid Office determines eligibility and forwards information to the lender and to the parent.
- The college disburses an approved PLUS loan in semester installments.
- Parents have the right to cancel all or a portion of their PLUS loans by contacting the Financial Aid Office within 90 days after disbursement.
|
|
Apply for Aid - FAFSA
Financial Aid Basics