Federal Parent Loan for Undergraduate Students Program (PLUS) by naw15914

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									2010f- 2011 n a b o u t o t h e r l o a n o p t I o n s
   I n o r m at I o
The following loans are available to students to assist in meeting their Cost of Attendance (COA). The COA is listed on the award notice as the Institutional Budget.
Requested loan amounts must be within the COA established by Student Financial Services. Please remember, loans must be repaid. Budget carefully; borrow only
what you need. Minnesota State Mankato requires that a complete valid Free Application for Federal Student Aid (FAFSA) be on file prior to the processing of student
loans. The FAFSA can be completed online at: www.fafsa.ed.gov/

                                       Federal Parent Loan for Undergraduate Students Program (PLUS)
The Federal Direct PLUS Loan provides loans to parents of dependent undergraduate students attending post-secondary schools. The parent is the borrower of the Direct PLUS Loan and is
responsible for paying the interest and principal on the loan while the student is in school. Since July 1, 2006 the interest rate on the Direct PLUS Loan is capped at 8.5%. Direct PLUS loan
interest rate is currently at 7.9%.
To apply for a Federal Direct PLUS Loan the following three steps are required.
      > Complete and submit a PLUS Loan form, available at www.mnsu.edu/campushub/plus, to Student Financial Services.
      > Complete an online PLUS Master Promissory Note (MPN) at www.studentloans.gov. The online PLUS MPN can be completed by signing in with the parent Federal PIN number used to
          electronically sign the student’s FAFSA. If the parent does not have a Federal PIN, one can be obtained from the U.S. Department of Education at www.pin.ed.gov. Once the parent is
          signed in, under the heading “Master Promissory Note” click on “Complete MPN” and on the middle of the page click on “Parent PLUS”.
      > Complete an online Direct PLUS Loan Request with the Department of Education at www.studentloans.gov by signing in with the parent Federal PIN number used to electronically sign
          the student’s FAFSA.  On the left hand side under the heading “PLUS Loan Processes” click on “Request PLUS loan” and on the middle of the page click on “Parent PLUS”. (This is in
          addition to the PLUS Loan form submitted to the school).
For subsequent PLUS Loan requests, you will need to complete and submit a PLUS Loan form, available at www.mnsu.edu/campushub/plus, to Student Financial Services and a Direct PLUS Loan
Request with the Department of Education at www.studentloans.gov under the heading “PLUS Loan Processes”.
Dependent students whose parents are denied the PLUS Loan may be eligible to receive additional funds from the Unsubsidized Federal Direct Loan Program. A denial notice from the
Department of Education will be provided to the school; at that time the eligibility for additional funds will be determined and processed according to the student’s request.
The PLUS MPN is valid for up to ten years, provided that the parent borrows within one year from the date the MPN was signed. If the PLUS MPN is still valid, the parent-borrower needs to submit
the PLUS Loan Form at www.mnsu.edu/campushub/plus, to Student Financial Services and a Direct PLUS Loan Request with the Department of Education at www.studentloans.gov under the
heading “PLUS Loan Processes” to apply for additional funds.
If the parent-borrower is applying for Federal Direct PLUS Loan funds for more than one student, a separate PLUS Loan Form, Direct PLUS Loan request, (and PLUS MPN, if needed) must be
submitted for each student.
For Federal Direct PLUS, an eligible parent-borrower must:
      > Be the natural, adoptive, or step-parent of the dependent student whose income was listed on the FAFSA,
      > Be a U.S. citizen or eligible non-citizen,
      > Be borrowing on behalf of a dependent student who meets all of the requirements for the Federal Direct Loan Program,
      > Have a creditworthy history, and
      > Not be in default or owe a refund on any Title IV Federal Student Aid.

                                                                        Federal Graduate PLUS Loan
Graduate students have the option to borrow a Federal Direct Graduate PLUS Loan. This is a federal student loan; however, unlike the Federal Direct Loan program the Federal Direct Graduate
PLUS borrower must meet the credit criteria. It is strongly recommended that students exhaust their Federal Direct Loan eligibility because of the more favorable loan program terms before they
consider a Federal Direct Graduate PLUS Loan.
Entrance loan counseling is a requirement for all first time borrowers of the Federal Direct Graduate PLUS Loan at Minnesota State Mankato and can be completed at www.studentloans.gov.
To apply for a Federal Direct Graduate PLUS Loan the following two steps are required.
      > Complete an online Graduate PLUS Master Promissory Note (MPN) at www.studentloans.gov. The online Graduate PLUS MPN can be completed by signing in with the Federal PIN
          number used to electronically sign the FAFSA. Assistance with your Federal PIN can be obtained from the U.S. Department of Education at www.pin.ed.gov. Once you are signed in,
          under the heading “Master Promissory Note” click on “Complete MPN” and on the middle of the page click “Graduate PLUS”.
      > Complete an online Direct Graduate PLUS Loan request with the Department of Education at www.studentloans.gov by signing in with the Federal PIN number used to electronically sign
          the FAFSA. On the left hand side under the heading “PLUS Loan Processes” click on “Request PLUS Loan” and on the middle of the page click on “Graduate PLUS”.
For subsequent Federal Direct Graduate PLUS Loan Requests you will need to complete and submit a Federal Direct Graduate PLUS Loan Request with the Department of Education at
www.studentloans.gov under the heading “PLUS Loan Processes”.
For Federal Direct Graduate PLUS Loans, an eligible graduate student-borrower must:                           Contact Information
      > Be a U.S. citizen or eligible non-citizen,                                                                 Student Financial Services
      > Meet all of the requirements for the Federal Direct Loan Program,                                      Minnesota State University, Mankato
      > Have a creditworthy history, and                                                              120 Wigley Administration Center, Mankato, MN 56001
                                                                                                        507-389-1866 • www.mnsu.edu/campushub
      > Not be in default or owe a refund on any Title IV Federal Student Aid.
                                                                                              Alternative Educational Loans from Private Lenders
Several private lenders offer educational loan programs. The terms of these alternative loans vary from one lender to another. Some have fees attached to the loans along with interest. Repayment options also vary from one lender to another.
To be eligible for an alternative loan, students must meet the specific requirements of the loan they select. Most lenders require a creditworthy co-signer. Minnesota State Mankato policy requires that a FAFSA must be on file in order for Student Financial
Services to process an alternative loan application, regardless of the lender’s requirements. There are limited exceptions to the FAFSA requirement for students who are prohibited from completing the FAFSA process; these students must meet with a financial
aid advisor for approval before the alternative loan application will be processed.
The Higher Education Opportunity Act (HEOA) reauthorized the Higher Education Act (HEA) and amended the Truth-In-Lending Act (TILA). It established new institution based disclosure requirements and Private Education loan disclosures. It requires institutions
to inform borrowers of their possible eligibility for Title IV loans and that the terms/conditions of the Title IV loans may be more favorable than private education loans. This is to ensure an informed student loan borrower, borrower choice of lender, and
transparency and high ethical standards in the student lending process.
HEOA also classified as private loans many state-funded student loan programs such as Minnesota SELF, Alaska (AlaskaAdvantage), and South Carolina (PAL - Palmetto Assistance Loan).
You have the option to choose any private lender that offers educational loan programs whether or not the lender is included in the list below. The lenders listed represent the loans processed in the past three years at Minnesota State Mankato and are
currently active.
                                                                 Lender Volume               Meet Satisfactory                   Minimum                                                                                           Lender Volume              Meet Satisfactory                  Minimum
                 Lender Information                                                                                                                                             Lender Information
                                                                  2009-2010                  Academic Progress                   Amount                                                                                             2009-2010                 Academic Progress                  Amount
 Wells Fargo                                                                                                                                                  Affinity PLUS Federal CU*
 Lender ID 807176                                                                                                                                             Lender ID 500401
 https://www.wellsfargo.com/student/                                                                                                                          http://www.affinityplusstudentloans.org
 (800) 378-5526                                                      $6,773,120.00                       No                        $1,000.00                  (800) 737-5115                                                           $202,336.00                        No                      $1,000.00
 Minnesota Office Of Higher Education(SELF)                                                                                                                   SunTrust
 Lender ID 825033                                                                                                                                             Lender ID 802560
  http://www.ohe.state.mn.us/self/self.cfm                                                                                                                    http://www.suntrusteducation.com
 (888) 295-0713                                                      $2,909,694.00                       Yes                        $500.00                   (800) 552-3006                                                            $28,370.00                        No                      $1,001.00
 U.S Bank                                                                                                                                                     Alaska Commission on Postsecondary Education (AlaskaAdvantage)
 Lender ID 830694                                                                                                                                             Lender ID 826966
 http://www.usbank.com                                                                                                                                        http://akadvantage.alaska.gov
 (800) 242-1200                                                      $1,112,717.00                       Yes                       $1,000.00                  (800 )441-2962                                                             $8,500.00                        Yes                    No minimum
 Sallie Mae                                                                                                                                                   Chase
 Lender ID 900905                                                                                                                                             Lender ID 503000
 http://www.salliemae.com                                                                                                                                     http://www.chasestudentloans.com
 (888) 272-5543                                                      $1,014,615.00                       No                        $1,000.00                  (866) 908-7479                                                             $2,500.00                        No                       $500.00
 CitiBank                                                                                                                                                     Aspire Federal Credit Union*
 Lender ID 826878                                                                                                                                             Lender ID 901101
 https://www.studentloan.com                                                                                                                                  http://nj.custudentloans.org/n/if4238
 (800) 967-2400                                                       $657,614.00                        No                        $1,000.00                  (888) 549-9050                                                             $2,141.00                        Yes                     $2,000.00
 Discover                                                                                                                                                     Novation*
 Lender ID 831312                                                                                                                                             Lender ID 500482
 http://www.discoverstudentloans.com                                                                                                                          http://www.novation.studentchoice.org
 (877) 728-3030                                                       $240,144.00                        Yes                       $1,000.00                  (866) 414-2274                                                             $1,000.00                        Yes                     $1,000.00
 Bank of North Dakota                                                                                                                                         Iowa Student Loans
 Lender ID 816386                                                                                                                                             Lender ID 827825
 http://mystudentloanonline.nd.gov                                                                                                                            http://www.studentloan.org
 (800) 472-2166 ext 5660                                              $215,084.00                        Yes                        $500.00                   (800) 243-7552                                                               $0.00                          Yes                      $500.00
 PNC Education Loan Center                                                                                                                                    South Carolina Student Loan (PAL - Palmetto Assistance Loan)
 Lender ID 809921                                                                                                                                             Lender ID 833128
 http://www.pnconcampus.com                                                                                                                                   http://www.scstudentloan.org
 (800) 762-1001                                                          $0.00                           No                        $1,000.00                  (800) 347-2752 ext. 3192                                                     $0.00                          Yes                     $2,000.00
*Credit Unions might have additional requirements such as membership. Please check with particular Credit Union for details.
   A member of the Minnesota State Colleges and Universities System. Minnesota State Mankato is an Affirmative Action/Equal Opportunity University. This document is available in alternative format to individuals with disabilities by calling the Campus Hub at 507-389-1866 (V), 800-627-3529 or 711 (MRS/TTY).
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