In addition to the Federal Direct Subsidized and Unsubsidized Stafford Loans available to student borrowers, parents of dependent, undergraduate students and independent graduate students may borrow additional funds through the William D. Ford Federal Direct PLUS Loan program. The U.S. Department of Education assigns the borrowed loan(s) to an affiliated servicer.
Parents or independent graduate students may borrow any amount up to the cost of education minus any other financial aid awarded. Eligibility will be based upon a satisfactory credit check as decided by the U.S. Department of Education.
For 2012-2013, the PLUS loan is offered at a 7.9% fixed interest rate. The federal government retains a 4.0% origination fee for the amount borrowed before the funds disburse to the College.
Certified PLUS loans will disburse in two portions, half toward each semester (Fall/Spring).
Visit StudentLoans.gov. A FAFSA PIN number is required by a parent (and if necessary, the endorser) to borrow a Federal Direct PLUS loan. If you need to create or request a duplicate PIN number, visit pin.ed.gov. Graduate students should meet with a financial aid counselor before beginning this process.
A parent or graduate student borrower begins by logging in as him or herself, then:
1. Select Request a Direct PLUS loan. Complete the application for the 2012-2013 academic year at Manhattan College. Parents will apply for a Direct Parent PLUS loan, while graduate students will apply for a Direct Graduate PLUS loan.
2. Finally, you will authorize a credit check and receive an immediate credit decision. If approved*, you must proceed to complete a Master Promissory Note (MPN).
We will receive confirmation of your loan status from the U.S. Department of Education in 1-2 business days. You are encouraged to print the MPN for your records, but may always log back on to StudentLoans.gov for an electronic copy.
The dependent, undergraduate or independent, graduate student must be enrolled at least half-time (six credits) and meet satisfactory academic progress requirements.
For undergraduate students, the borrower must be a natural parent, adoptive parent, or stepparent (if his/her income and assets are considered in the expected family contribution) of the dependent student.
Federal PLUS regulations define credit eligibility as having no "adverse credit" including:
The Master PLUS Promissory Note (MPN) will simplify the processing of your loan(s). The Federal Direct PLUS MPN is a promissory note that can be used to make one or more Federal Direct PLUS Loans to a parent borrower to help pay for the educational costs of a dependent, undergraduate student.
A parent who wants to borrow Federal Direct PLUS Loans for more than one dependent student must complete a separate Federal Direct PLUS MPN for each student but the online application includes an easy option to apply a single application entry for two separate dependents. In addition, if each parent wants to borrow Federal Direct PLUS Loans for the same student, they must individually complete a separate Federal Direct PLUS MPN.
The interest rate is fixed at 7.9% and is adjusted by the federal government each year on July 1. The interest rate will never be higher than 9%. Obtain current interest rates. As of July 1, 2012, the loan origination fee charged for a Direct PLUS Loan is 4.0% of the amount borrowed.
The loan will be applied to your student's account. The loan must be disbursed in two equal amounts at the beginning of each term. You can check on your loan disbursement by viewing your Account Summary on Self-Service. In accordance with federal student aid regulations, Federal Direct Loan disbursements may occur as early as ten days prior to the beginning of the semester if all requirements are met.
|LOANS||Amount||Who is Eligible||How to Apply||Interest Rate and Repayment|
|Federal Direct Subsidized Stafford Loan||Max loan limits are $5,500 for freshmen (only $3,500 may be in subsidized loan), $6,500 for sophomores (only $4,500 may be in subsidized loan), $7,500 thereafter (only $5,500 may be in subsidized loan).
Independent students may be eligible for $4-5,000 in additional loan funds.
|US citizens or permanent residents demonstrating financial need||Submit FAFSA||Fixed rate - Begins 6 months after student leaves school or drops below half time enrollment (6 credit hours.|
|Federal Direct Unsubsidized Stafford Loan||Students who have not received the max Federal Direct Subsidized Stafford Loan. Independent students may have additional eligibility.||Submit FAFSA||Fixed rate - Begins 6 months after student leaves school or drops below half time enrollment (6 credit hours). Interest accrues while in school.|
|Federal Direct Plus Loan||Up to the cost of education less aid received||Parents of dependent students||Submit FAFSA and loan application||Fixed rate - Begins 60 days after entire loan is disbursed or 6 months after student leaves school.|