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Federal Direct PLUS Loan for Graduate/Professional Students The Parent Loan for Undergraduate Students (PLUS) is a low-interest federally insured loan for Graduate/Professional Students 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. Credit checks are required however the Direct Lending Program uses a more lenient credit assessment when compared to most FFELP lenders. Processing fees will be deducted from the total amount borrowed. Eligibility for a Graduate PLUS: A graduate student may apply for a Grad PLUS Loan if he/she is:
Borrowing Limits The maximum a Graduate student may borrow per academic year for a Graduate PLUS is equal to the cost of attendance minus other financial aid (including Federal Direct Subsidized, Unsubsidized or a Private loan which are eligible). There is no aggregate maximum loan limit for the Graduate PLUS Loan. Applying for a Graduate PLUS: Step 1: GRADUATE STUDENTS applying for a Federal Direct Graduate PLUS loan must complete an Entrance Counseling at www.studentloans.gov if one was not completed prior to the Federal Direct Sub/Unsub Loan. If the student has completed an Entrance Counseling already then proceed to step 2. Step 2: The Student will complete the Federal Direct PLUS Loan application at www.studentloans.gov. Once on the site, “Sign In” under the “Manage My Direct Loan” located on the left side of the page. You will need your social security number, date of birth and your Federal Student Aid PIN to sign in. To complete the Graduate PLUS Loan application, select the link titled "Start PLUS Application Process" and select the link for the "Graduate PLUS”. The Department of Education will automatically notify Methodist University of the loan decision. If the borrower requests a paper copy of the MPN be sent for completion, there are more steps involved before the Direct Loan can be approved and disbursed, possibly causing delays in receiving loan funds. Please note: Once the loan is completed and processed, the loan is assigned to a servicer by the Department of Education. The servicers are ACS, Great Lakes Education Loan Services, Nelnet, Sallie Mae Corporation, and AES/PHEAA. All questions after disbursement of the loan should be directed to the servicer. Step 3: Borrowers may check the status by contacting the Department of Education Applicant Services at 1-800-557-7394. PLEASE NOTE: Graduate Students Deferring the Graduate PLUS: Students must contact the Department of Education Applicant Services at 1-800-848-0979 for deferment status. THE DEFERMENT PROCESS WILL NEED TO BE COMPLETED ONCE THE FIRST DISBURSEMENT HAS BEEN RECEIVED AT METHODIST UNIVERSITY BEFORE THE GRADUATE PLUS WILL BE PLACED IN DEFERMENT STATUS. How will my loan be issued? According to institutional policy, the Graduate PLUS Loan must be issued in two equal amounts, one in the Fall and one in the Spring semester of the academic year. Repayment terms The Graduate PLUS Loan is a fixed-rate loan with a 7.9% interest rate. Interest begins accruing from the time of full disbursement. A 2.5% origination fee (4% origination fee - 1.5% up-front rebate = 2.5% origination fee) will be deducted from each disbursement. Repayment begins within 60 days after the date of the final disbursement. Repayment begins immediately if at any point the student is not enrolled at least half time. Students must contact the Department of Education Applicant Services at 1-800-848-0979 for deferment status. THE DEFERMENT PROCESS WILL NEED TO BE COMPLETED ONCE THE FIRST DISBURSEMENT HAS BEEN RECEIVED AT METHODIST UNIVERSITY BEFORE THE GRADUATE PLUS WILL BE PLACED IN DEFERMENT STATUS. Loan cancellation The borrower has the right to cancel all or part of federal loan disbursement within 14 days of official notification of the disbursement to the university. Submit a written request to the Office Financial Aid within 14 days from the disbursement date. Official notification will be sent to the borrower notifying the borrower of the funds credited to university account. The Borrower must submit a written request to cancel a Graduate PLUS loan by a submitted handwritten, typed, or printed statement bearing an original signature submitted by mail, in person, or by fax (no e-mail can be accepted). Canceling a loan disbursement could cause a balance to be due on the university account in the Business Office which the borrower will be responsible for paying. This is more likely to be true if excess funds (credit balance) have already been distributed via a check. Repayment after the designated time period The borrower cannot cancel a loan disbursement if the designated time period described above has already passed. Instead, the borrower can repay the loan disbursement directly by contacting the loan holder which can be found by accessing www.nslds.ed.gov. The borrower will be responsible for any interest that may have accrued and/or any loan fees. 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.
Ombudsman 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. Loan ConsolidationA 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. |
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The Office of Financial Aid
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