Office Hours:
Monday-Tuesday
8:30 a.m. - 4 p.m.
Wednesday
10:00 a.m. - 4 p.m.
Thursday - Friday
8:30 a.m. - 4 p.m.

FEDERAL PLUS LOANS

The Federal PLUS loan (Parent Loan for Undergraduate Students) is an option parent(s) may wish to consider. This federal loan ia a fixed 8.5% interest loan authorized by the government to help parents pay for their dependent student’s post secondary education costs. A student’s PARENT is responsible for repayment of this loan. Under new federal regulations, parents now have deferment options. Parents may choose to defer payments until six months after the date the student ceases to be enrolled at least half time or may pay accruing interest monthly or quarterly, or allow interest to be capitalized quarterly. A credit check is required to access this loan program.

At PSU we realize that the cost of financing an education is a substantial commitment and parents may need to borrow to help meet education costs. All loans will need to be repaid ultimately (with interest!), so we strongly encourage parents keep borrowing to a minimum and consider all financing options (i.e. savings, student work, tuition payment plans). The Federal PLUS loan is a credit-based parent loan which may cover up to the total Cost of Attendance (COA) as defined by PSU, minus student aid, and carries a three to four percent origination fee. Effective July 1, 2006, the interest rate for PLUS was fixed at 8.5%. Since the Federal PLUS is a federal loan, be aware there are better benefits in a Federal PLUS Loan versus student benefits if students are borrowing through an alternative (private) loan.

PARENTS MAY CHOOSE ANY LENDER and may wish to use a lender with whom they have an established financial relationship. For families who would like assistance in selecting a lender, PSU is providing a NEW tool (FASTChoice ). This tool is provided by Great Lakes Higher Education Assistance Corporation (GLHEAC), a guarantor and servicer who works with a multitude of lenders, and specifically the lenders PSU families have used in the past. FASTChoice will also allow users to view side by side comparisons of benefits and loan terms to assist in selecting the best option for your family.

To select a lender and apply for a PLUS loan electronically click here, You will be directed to FASTChoice where you will read required federal disclosure information and be directed to a Loan Options page. Click on the Parent PLUS Tab to learn more about Parent PLUS Loan lender options. After selecting a lender, a parent will be able to immediately apply with the lender they have chosen. A parent may process a loan from start to finish if the parent has their federal PIN number needed to sign the required Master Promissory Note (MPN). If the lender uses Great Lakes Higher Education Assistance Corporation as their guarantor, a parent will receive a credit decision on their Parent PLUS Loan immediately. If the lender works with a different guarantee agency, that lender will inform the parent of their approval process.

Note: If parents are determined ineligible to borrow, and notification is received by PSU of this denial, PSU will automatically process for additional Federal Unsubsidized Stafford Loan eligibility. First and second year students are eligible for up to an additional $4,000 per year, while third through fifth year students are eligible for up to an additional $5,000 per year.

Important:

Plymouth State University will not certify a PLUS loan until we receive notification that the master promissory note has been signed with the lender.

If PSU receives PLUS certification request and the financial aid process has not been completed, we will hold that certification until the student has been awarded financial aid (unless the student wishes to decline the financial aid process).

Holding certification of a PLUS loan may result in an expired credit check approval. Credit approval generally expires every 90 days. Credit may need to be rechecked by the lender if the PLUS loan has not been certified by PSU within the first 90 days.

The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans.

You may access your prior loan information on the National Student Loan Data System (NSLDS) website at: www.nslds.ed.gov . This site contains all of your federal Title IV aid history.