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Federal Direct PLUS Loan for Graduate/Professional Students
2015-2016 PARENT PLUS AND GRAD PLUS APPLICATIONS FOR MU WILL OPEN WITH THE DEPT OF ED ON JUNE 15, 2015 AT WWW.STUDENTLOANS.GOV.
The Federal Parent Loan for Undergraduate Students (PLUS) for Graduate/Professional Students (Graduate PLUS) is a low-interest federally insured loan to help pay college costs. The loan can be used to cover any educational expenses not covered by other forms of financial aid. Under the Federal Direct PLUS loan program students may borrow up to the full cost of the student's education minus other financial aid received. To be eligible, borrowers are required to complete the Free Application for Federal Student Aid (FAFSA), the student must be a U.S. citizen or eligible noncitizen, must not be in default on any federal education loans or owe an overpayment on a federal education grant, the student must be enrolled and accepted for enrollment in a degree program on at least a half-time basis (3 semester hours) as an graduate student, must maintain Satisfactory Academic Progress (SAP), and the student borrower must not have an adverse credit history (a credit check will be performed). If the student borrower does not pass the credit check, the borrower may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the borrower fails to do so, and borrowers must have borrowed the maximum eligibility of the Federal Direct Unsubsidized Loans. A student must sign for the loan and complete all required documentation prior to the end of the student’s current academic year enrollment. A student must sign for the loan and complete all required documentation prior to the end of the student's current academic year enrollment, (per federal guideline 34 CFR 668.164(g)(2)(ii)). Any missing documents can be found on the student's myMu Portal.
Applying for a Graduate PLUS (FAFSA Required)
New Students: Graduate Students applying for a Federal Direct Graduate PLUS loan must complete an Entrance Counseling at www.studentloans.gov if not completed during the completion of the Federal Direct Unsubsidized Loan process. If the student has completed the Entrance Counseling, then proceed to step 2.
Please note: When the loan(s) have been processed, you will receive an updated award letter from MU listing your loan has been PROCESSED. Once the loan is processed/booked, the loan is assigned a Loan Servicer on behalf of the Department of Education. For a complete listing of Loan Servicers, please visit www.studentloans.gov and choose Loan Servicers at the bottom right. For additional information regarding interest rates, repayment etc for Federal Direct Sub/Unsub, Parent/Graduate PLUS, please contact the Direct Loan Servicing Center at 1-800-848-0979.
Graduate Students Deferring the Federal Graduate PLUS: Students must contact the Department of Education Applicant Services at 1-800-557-7394 to ensure deferment status because student borrowers may need to submit an In-School Deferment Request form to the Direct Loan Servicing Center or repayment will begin immediately
Direct Loan Interest Rate and Origination Fee
See the Federal Student Aid Web site for interest rates.
Loan Cancellation/ Reinstatement
Important Notice: Canceling any loan disbursement could result in a balance to be due on the student's account in the Business Office which the student will be responsible for paying.
Repayment after the designated time period
Enrolled for less than 3 (Graduate Level) Semester Hours, Withdrawing, or Graduating From MU:
Federal regulations require students who have borrowed a Federal Direct Loan and are graduating, leaving school, or dropping below half-time enrollment to complete an Exit Counseling. During the Exit Counseling, the student borrower will review rights and responsibilities as a student borrower, important information about repaying student loans, consolidation, repayment options, discharge and forgiveness as well as useful information to help manage student loans during repayment. Students must complete the Exit Counseling at www.studentloans.gov.
National Student Loan Database
Borrowers can review Loan (FFELP or Direct), Perkins, and Federal Grant history through secure login to the National Student Loan Database at www.nslds.ed.gov. This site is created to collect information from schools and lenders so that aid can be more efficiently processed. It is a secure site, and only authorized personnel can log on. It is updated every 30-60 days by the schools and lenders, so recent disbursements may not show immediately.
If a borrower disputes the terms of the loan in writing and the holder of the loan is unable to resolve the dispute, a borrower may seek the assistance of The Federal Student Aid Ombudsman of the Department of Education. The Federal Student Aid Ombudsman will review and attempt to informally resolve dispute and may be reached at 1-877-557-2575 or www.ombudsman.ed.gov.
A Direct Consolidation Loan Program is available that allows a borrower to consolidate (combine) one or more of the eligible federal education loans into one loan. For more details and information, go to www.loanconsolidation.ed.gov.