Federal Direct Parent PLUS Loans
Due to current changes in Federal Legislation, parents will be required to complete their Application & Master Promissory Note with the Department of Education.
Please Note: There are 2 parts to the PLUS Loan Process.
Complete the PLUS Loan Application: Gives the school information they need to create your Direct PLUS Loan.
Complete the Master Promissory Note: On the studentloans.gov website, click "Complete MPN (Master Promissory Note)" then choose the option for "Parent PLUS". This MPN is your legal loan agreement, which explains the terms and conditions of your loan.
Effective 2010-2011 Marist College will participate in the William D. Ford Direct Lending Program. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. Marist College policy states that the FAFSA must be completed before a Direct PLUS Loan can be awarded. This change will require all new borrowers to complete Master Promissory Notes with the Department of Education.
Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Parents of all income levels are eligible; however, regulations require a credit worthiness evaluation.
- Marist College policy states that the FAFSA (Free Application for Federal Student Aid) must be filed for that school year and the dependent student must be enrolled in an undergraduate degree program in order for Marist to certify the PLUS Loan.
- Borrowing limit is the Cost of Attendance minus any other aid.
- Federal Regulations provide for 4% Fee to be deducted from the loan at disbursement. (Ex: A $10,000 PLUS loan would be disbursed as $9,600 if no fees are waived; therefore if you really need $10,000 then borrow $10,417.
- Interest rate is FIXED at 7.9%, unless otherwise stated as a repayment benefit.
- Repayment begins 60 days after the 2nd disbursement with up to 10 years to repay depending on amount borrowed. Parents who are interested in deferment for payments should contact their lender directly.
- Loan Forgiveness for the death or permanent disability of either the borrower or the student. (This is not available with Private Loan Financing)
- The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov. All Title Iv loans are reported to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
Parent eligibility requirements for a Direct PLUS Loan
You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.
Applying for a PLUS Loan and the Master Promissory Note (MPN)
To take out a Direct Loan for the first time, you must complete the FAFSA, a PLUS Application, and master promissory note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).
If you are borrowing Direct PLUS Loans for more than one student, you'll need to complete a separate MPN for each one. To complete an MPN online, you will be required to use your Department of Education-issued PIN (not your child's). If you do not have a PIN, you may request one from the official PIN site.
If, at any time, you are not satisfied with the service you receive, please contact our office.