Docstoc

Federal Direct Parent PLUS Loan UMass Dartmouth

Document Sample
Federal Direct Parent PLUS Loan UMass Dartmouth Powered By Docstoc
					                                                                   Financial Aid Services
                                                                   285 Old Westport Road
                                                                   North Dartmouth MA 02747-2300
                                                                   508.999.8643




Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan is a low-interest loan program that enables parents of dependent

expenses.

Features of the Parent PLUS Loan:
    The borrowing parent must pass a credit check.
    Interest rate is currently fixed at 7.9%.
    Origination fee is 4%.
    Allows borrowing up to the cost of education minus other financial aid received.
    Deferment may be requested while the student is enrolled at least half-time in an eligible program. Otherwise,
    repayment begins within 60 days after the loan is fully disbursed.
    If approved without an endorser, the borrower signs a Master Promissory Note (MPN) that is valid for ten
    years and for all future credit-approved PLUS loans. Parents borrowing PLUS Loans for multiple children must
    sign an MPN for each child for whom they are borrowing.


Parent PLUS offers a variety of repayment plan options:
    Standard Repayment Plan allows repayment of your loans within 10 years with a fixed monthly payment.
    Graduated Repayment Plan allows you to start with lower monthly payments at first, and then gradually
    increases your payments until your loan is fully repaid in ten years.
    Extended Repayment Plan allows you to repay your loan over a period not to exceed 25 years. There are
    eligibility requirements for the Extended Repayment Plan.

Sample loan repayments are shown below:

Initial debt    Standard                         Graduated                       Extended
when you        Repayment                        Repayment                       Repayment
enter           Plan                             Plan                            Plan (fixed)
repayment
                Monthly         Total Repaid     Monthly          Total Repaid   Monthly           Total Repaid
                Payment                          Payment                         Payment
$ 5,000         $60             $7,248           $42              $7,694         Not Available     Not Available
$10,000         $121            $14,496          $84              $15,388        Not Available     Not Available
$15,000         $181            $21,744          $127             $23,082        Not Available     Not Available
$20,000         $242            $28,992          $169             $30,776        Not Available     Not Available
$25,000         $302            $36,240          $211             $38,470        Not Available     Not Available
$30,000         $362            $43,488          $253             $46,165        Not Available     Not Available
$40,000         $483            $57,984          $338             $61,553        $306              $91,824
$50,000         $604            $72,480          $422             $76,941        $383              $114,780
$60,000         $725            $86,976          $506             $92,329        $459              $137,736


Additional information on loan repayment, including a loan repayment calculator is available at
www.studentloans.gov.
                                                    Page 1 of 2
PLUS Loan Application Process

     Step 1: Parent logs in with their Federal PIN
      Click on the link below to launch the Department of Education's Federal Direct Parent PLUS Loan
      application. The parent is the borrower and must provide their information during the log in process.
      In order to complete the PLUS application and sign the MPN, the parent must have a Department of
      Education PIN (used when signing the FAFSA). If the borrowing parent does not have a PIN
      number, one may be obtained at www.PIN.ed.gov before beginning the PLUS application.
                                        www.studentloans.gov
      It is very important that the PARENT, not the student, log in using their parent PIN.
      Click the 'Sign In' button and enter the Parent PIN and the additional information requested.

     Step 2: Click 'Start PLUS Application Process'


     Step 3: Enter Parent and Student Information
      Enter demographic information for the parent applicant as well as student and school information.

     Step 4: Review Data Entered
      Verify the information that you entered. Correct any information that was entered incorrectly.

     Step 5: Credit Check
      Federal Direct PLUS awards are credit-based loans. To qualify for the loan, the parent must first
      pass a credit check. The parent borrower must agree to the terms provided and click submit. The
      credit check will end in an approval or denial.
      If Credit Check Ends in Approval:
      If approved and a first time PLUS Loan borrower, continue with Step 6 below to complete a PLUS
      Master Promissory Note (MPN). Parents borrowing PLUS Loans for multiple children must sign a
      PLUS MPN for each child for whom they are borrowing.
      If Credit Check Ends in Denial:
      If denied, options will be given that include appealing the credit decision, obtaining an endorser, or
      not pursuing the loan. Select the appropriate answer.
      If denied and the parent will not obtain an endorser or appeal the credit decision,UMass Dartmouth
      will award the student additional Federal Direct Unsubsidized Loan up to the annual established
      limits: Freshmen/Sophomores up to $4,000; Juniors/Seniors up to $5,000. An Unsubsidized Direct
      Loan accrues interest while the student is in school.
      Important: If parent has obtained an endorser and the endorsement process is complete OR the
      parent has an approved credit appeal decision, contact Linda Sumner at lsumner@umassd.edu or
      508-999-8643 for further instruction.
     Step 6: Begin the PLUS Master Promissory Note (MPN) Process
      Click the link Complete Master Promissory Note.

     Step 7: Complete the PLUS MPN
      Complete additional parent information and personal references. Read and agree to the terms and
      conditions of the loan.
     Step 8: Review, Sign, and Print the PLUS MPN
      Review the information provided, complete the signature boxes and click 'Sign'. Keep a copy of the
      MPN for your records.
     Step 9: UMass Dartmouth Certifies and Awards the PLUS Loan
      The Department of Education will notify UMass Dartmouth regarding your PLUS Loan application. If
      the student is enrolled at least half-time and meets all other eligibility criteria, UMass Dartmouth will
      certify the loan for the amount requested up to the cost of attendance minus other financial aid
      received. The PLUS Loan will be added to the student's financial aid award and will be visible in the
      UMass Dartmouth COIN system within 5-7 business days at www.umassd.edu/coin/                                  

                                                    Page 2 of 2

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:11/2/2012
language:Latin
pages:2