Federal Direct Grad PLUS Loan Acceptance Instructions and Information The Grad PLUS Loan is a loan for a graduate or professional student. The student can borrow the total estimated cost of attendance less the student's total financial aid. The student must complete a 2014-15 Federal Direct Grad PLUS Loan Acceptance form and Master Promissory Note (e-MPN). A 2014-2015 FAFSA is required. A federal Personal Identification Number (PIN) is required to complete this process. This can be applied for at: www.pin.ed.gov.
There are three steps to process a Grad PLUS Loan
Step 1: Complete the 2014-15 FAFSA at www.fafsa.gov
Step 2: Complete and return the 2014-2015 Federal Direct Grad PLUS Loan Acceptance form Complete and return this form to the Financial Aid Office. Be sure to print clearly and answer all of the questions. An incomplete acceptance form could delay processing.
Step 3: Complete a Master Promissory Note (e-MPN) The borrower must complete the Grad PLUS Loan MPN online at: www.studentloans.gov
Interest Rates The Grad PLUS Loan interest rate is 6.41% with a cap of 10.50%. Interest begins to accrue at the time of each loan disbursement.
Loan Fees There is an origination fee of up to 4.288% charged by the U.S. Department of Education for processing the Grad PLUS Loan. The loan fee is deducted proportionately from each disbursement of the loan.
Credit Checks In order to borrow a Grad PLUS Loan, you must pass a credit check. After we receive the signed loan acceptance form, the Common Origination and Disbursement Center (COD) will perform a credit check and notify you of the results by mail. The Financial Aid Office will receive an electronic notification of the credit check results. If you have questions about the outcome of the credit check, contact the COD at 1.800.557.7394.
Denied Credit Checks If you do not pass the credit check, there are two options available to you. 1. Contact the COD at 1.800.557.7394 if you believe there was an error made on the credit check. 2. You can obtain a creditworthy endorser. The endorser must pass the credit check, agree to endorse the MPN, and agree to repay the loan if you fail to do so. Information about how to proceed with this option will be included in your letter from the COD.
Disbursements A positive credit check and completed e-MPN must be received before any funds can be disbursed to the student’s account. Estimated loan amounts will appear on the student’s account if we have received notification of a positive credit check. Loan disbursements are applied to charges on the student’s account before a loan in the student’s name is applied. Any refunds resulting from the Grad PLUS Loan will be mailed to the parent address listed on the 2014-15 Federal Direct Grad PLUS Loan Acceptance form.
Repayments Repayment on a Grad PLUS Loan begins 60 days after the final disbursement of the loan, and will continue while the student is enrolled in school. You may choose a Standard, Extended, or Graduated Repayment Plan. Information about these specific payment plans will be sent to you by the Direct Loan Servicer. If you are experiencing difficulty making your scheduled payments, you should contact Borrower Services at the Direct Loan Servicing Center at 1.800.848.0979.
Student Eligibility Before any Grad PLUS Loan proceeds can be disbursed, the student must be: • Enrolled at least half-time (6 credit hours) • Enrolled in a degree-seeking program • Maintaining satisfactory academic progress
I consent to the U.S. Department of Education and its agents obtaining a report of my credit record and using the information from that report in determining whether to make a Direct PLUS Loan to me. I understand that I will be notified in writing of the results of the credit check with respect to my loan application.
The Privacy Act of 1974 (5 U.S.C.552a) requires that the following notice be provided to you. The authority for collecting the information requested on this form is §451 et seq. of the Higher Education Act of 1965, as amended. Your disclosure of this information is voluntary. However, if you do not provide the information, you cannot be considered for a Direct PLUS Loan. The information on this form will be used to determine your eligibility for a Direct PLUS Loan. The information in your file may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called “Title IV Program Files” (originally published on April 12, 1994, Federal Register, Vol. 59 p. 17351) and “National Student Loan Data System” (originally published on December 20, 1994, Federal Register, Vol. 59 p. 65532). Thus, this information may be disclosed to federal and state agencies, private parties such as relatives, present and former employees and creditors, and contractors of the Department of Education for purposes of administration of the student financial assistance program, for enforcement purposes, for litigation where such disclosure is compatible with the purposes for which records were collected, for use by federal, state, local, or foreign agencies in connection with employment matters or the issuance of a license, grant, or other benefit, for use in any employee grievance or discipline proceeding in which the Federal Government is a party, for use in connection with audits or other investigations, for research purposes, for purposes of determining whether particular records are required to be disclosed under the Freedom of Information Act, and to a Member of Congress in response to an inquiry from the congressional office made at your written request.
Because we request your social security number (SSN), we must inform you that we collect your SSN on a voluntary basis, but section 484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) provides that, in order to receive any grant, loan, or work assistance under Title IV of the HEA, a student must provide his or her SSN. Your SSN is used to verify your identity, and as an account number (identifier) throughout the life of your loan(s) so that data may be recorded accurately.
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