Federal Direct PLUS loans

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).

Application

 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.

• You can opt to borrow the maximum dollar amount allowed (determined by SFS) or you can designate a specific dollar amount. 
• You can also decide whether you wish to defer payments while your student maintains half-time enrollment at Manhattan or make payments during the academic year. There is no penalty for prepayment on the Direct PLUS loan. 
• Indicate whether you (the parent) or the student should be the recipient of any credit balance resulting from the PLUS loan (the student must still initiate a refund request with our office).

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. 

*Direct PLUS loan denial options

Eligibility 

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:

• no debt repayment account that is 90 days or more delinquent, including unpaid collection accounts and charge-offs.
• has not had any debt discharged in bankruptcy or been in default on any debt such as foreclosure, tax lien, repossession, or wage garnishment in the last 5 years.

Promissory Note 

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.

Disbursements & Loan Fees 

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. 

• For the 2013-2014 academic year, the federal government will assess a loan origination fee for 4.204% of the amount borrowed in a Direct PLUS loan.

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.

Eligibility Chart