Federal Direct PLUS Loan
Available to Parents and Graduate Students
The Federal Direct PLUS Loan Program is a low-rate government loan that allows
parents who are U.S. citizens, U.S. nationals, or permanent residents, to borrow funds for
undergraduate educational expenses. The Program is administered by Bryant University’s
Office of Financial Aid, which works with the U.S. Department of Education to offer this
loan. Detailed information regarding the Federal Direct PLUS can be found on the U.S.
Department of Education’s web site at https://www.dl.ed.gov/. The loan is also available
to Graduate students who have filed a 2009-2010 FAFSA, borrowed through the Federal
Direct Student Loan and need additional funds to cover their educational expenses.
Typically, one parent is the borrower of the Federal Direct PLUS Loan, but, in cases of
divorced parents, each parent may borrow individually. If the parent borrower is denied,
the parent may request an endorser to the loan by contacting the Direct Loan Servicer at
1.800.557.7394. Upon PLUS denial, students may also contact the Bryant University
Office of Financial Aid to inquire about additional Federal Direct Unsubsidized Loans.
To be eligible to borrow from the Federal Direct PLUS Loan, the parent and student must
be U.S. citizens or eligible non-citizens and not in default on prior educational loans. If a
FAFSA has not been filed, a parent may be asked to submit a copy of a birth certificate or
Alien Registration card. The student must be enrolled at least half-time (6 credits) in a
degree program and making satisfactory academic progress. Parents must meet federally
defined creditworthiness standards for approval.
The maximum loan amount that a parent may borrow on behalf of each dependent
student may not exceed the student's cost of education, minus other estimated financial
assistance for the student. Loans for the full academic year, which is recommended, will
be disbursed directly to the University in two equal installments, half for each semester.
Interest on the Federal Direct PLUS does not begin to accrue until a disbursement is
made to the University. There is an origination fee of 4% that is deducted proportionally
from each loan disbursement. The Federal Direct PLUS currently offers a 1.5% up-front
rebate on this origination fee, so your fee at disbursement is 2.5%. If you fail to make 12
on-time monthly payments upon repayment, you lose this rebate.
For all Federal Direct PLUS Loans originated after 7/1/09, a fixed interest rate of 7.9% is
applicable. Repayment begins within 60 days of the loan being fully disbursed unless the
parent has requested a deferment through the Direct Loan Servicer. Information about
Federal Direct PLUS deferment is available at https://www.dl.ed/. The Direct Loan
Servicing Center will forward a Loan Disclosure Statement to all approved borrowers and
a repayment option may be selected at that time.
How to Apply:
Step 1: Complete the 2009-2010 Bryant University Federal Parent PLUS Application,
which can be found at the Bryant University home page > Current Students > Financial
Aid > Forms. The application indicates your requested loan amount for the 2009-2010
academic year and authorizes the U.S. Department of Education to perform a review of
your credit. You may fax the completed and signed Federal Direct PLUS Application to
the Bryant University Office of Financial Aid at 401.232.6293 or mail the completed and
signed application to Bryant University, Office of Financial Aid, 1150 Douglas Pike,
Smithfield, RI 02917-1284.
Step 2: Complete the Federal Direct Loan Master Promissory Note (MPN) online at
https://www.dlenote.ed.gov if this is your first time borrowing for the student currently
enrolled at Bryant University. The parent borrower will be required to use their U.S.
Department of Education issued personal identification number (PIN). This is the same
PIN that you used to sign the student’s Free Application for Federal Student Aid
(FAFSA). If you do not have a PIN, or can not recall it, please visit the Federal PIN web
site at http://www.pin.ed.gov. You will receive your PIN in approximately 3 business
days if you provide a valid email address. The Direct PLUS MPN is designed for parent
borrowers to use as a multi-year note for one dependent student. The Direct PLUS MPN
is valid and may be used to process subsequent Federal Direct PLUS Loans for the
student for up to 10 years after the original Direct PLUS MPN is signed.
Graduate students are also required to go to the site https://www.dlenote.ed.gov and sign
the MPN. Select MPN for Student Loans or Parent PLUS Loans - Find out here, select
Complete New MPN for Student Loans and select Graduate PLUS. Graduate students
are also required to complete Entrance Counseling, even if you completed the counseling
session as an undergraduate, at https://www.dl.ed.gov.
If you have any questions about the Federal Direct PLUS Loan Program, you may
contact the Office of Financial Aid at firstname.lastname@example.org or 401.232.6020.