Federal Direct PLUS (Parent) Loans 2010-2011
Parents or step-parents of undergraduate students may choose to apply for the Federal Direct PLUS Loan to cover college costs for undergraduate students.
How to apply:
- Eligibility is based on credit worthiness, not financial need. The PLUS loan can be used to meet the Expected Family Contribution (EFC). Borrowers may request up to the college Cost of Attendance minus any other financial aid received. Borrowers should request the amount needed for the entire academic year. Upon certification, Wesley College will determine the maximum amount that can be borrowed.
- Borrowers must complete a Direct PLUS Loan Request at www.studentloans.gov. (Note: if the “Sign In” button does not appear, please use a different web browser. The studentloans.gov web site is not compatible with all browsers.) Borrowers will need their US Department of Education PIN to access the Direct PLUS Loan Request. At this point, the borrower will provide the information necessary to perform a credit check and the results of the credit check will be available immediately after completion. Borrowers will also indicate the amount they would like to borrow and how credit balances are to be paid (i.e. returned to either the student or the borrower).
- If credit approved, the borrower must complete a Direct Loan Master Promissory Note (MPN). Borrowers may opt to complete the MPN immediately after the Request is completed, or they may return to the studentloans.gov website at a later time to do so. The MPN explains the terms and conditions of the PLUS loan and is a legally binding agreement to repay loan funds to the US Department of Education.
- If credit denied, the applicant is given the opportunity to cancel the Direct PLUS Loan request, to obtain an endorser, or to appeal the credit decision. Regardless of the applicant’s choice, a paper Endorser package will be sent to the applicant.
- Once the Request and MPN are completed, Wesley College’s Office of Student Financial Planning will receive the result of the credit check, as well as the requested loan amount and the borrower’s intentions. When a borrower’s creditworthiness is established, the Direct PLUS Loan will credit directly to the student’s account.
- Repayment of a Direct PLUS Loan begins 60 days after the full amount you’ve borrowed for a school year has been disbursed. This means that you generally must begin repayment while your child is still in school. For Direct PLUS Loans with a first disbursement date that is on or after July 1, 2008, you may request that repayment be delayed while your child is enrolled at least half-time and during the 6-month period after your child graduates or is no longer enrolled at least half-time. If you would like to postpone repayment of your PLUS Loan based on your child’s enrollment status, you must contact the Direct Loan Servicing Center.
Click here for some Frequently Asked Questions about Parent PLUS Loans.