Federal Direct Parent PLUS Loans are non-need based loans designed to help parents with the financing of a student's education and are available to parents of undergraduate students attending Baldwin-Wallace College at least half-time and are maintaining satisfactory academic progress. In addition, Parent PLUS Loan borrowers must be U.S. citizens or eligible non-citizens. Eligibility for the Parent PLUS Loan is based on creditworthiness, regardless of borrower's income.
PLUS loan amounts are divided equally by the academic terms of enrollment on file with the Financial Aid Office. (e.g. If a parent applies for a $4000 PLUS loan and the student is enrolled during the fall and spring semesters, the parent will receive a $2000 disbursement in the fall (less fees) and a $2000 disbursement in the spring (less fees.)
PLUS Master Promissory Note (MPN):
The MPN allows eligible borrowers to apply for multiple loans, over multiple years, for a single dependent child. Note: Parent borrowers who have completed MPNs through private lenders (or for other schools) in the past will be required to complete new MPNs through the Department of Education.
Maximum Annual Loan Limit:
Cost of education less any other financial aid received by the student.
Parents are encouraged to budget their costs for the entire academic year when determining the amount of PLUS loan needed.
Interest Rate for Federal PLUS Loans: 7.9% ( This is a fixed interest rate.)
There is a 4 percent loan origination fee, however, Federal Direct PLUS Loan borrowers will receive an upfront 1.5% rebate at the time of origination based on paying your first 12 monthly payments on time. Therefore, the assessed fee to the borrower is only 2.5%.
Repayment begins 30-60 days after the final disbursement of the loan for each academic year. (e.g. A parent borrowing a PLUS Loan at the beginning of the student's freshman year typically enters repayment in February/March of the student's freshman year.)
There are no prepayment penalties.
How to Apply:
( Note: To ensure the receipt of funds toward the student's billing account, parents should apply for the PLUS Loan no later than July 15, 2011.)
STEP 1: Go to studentloans.gov
[ Since this is a Parent Loan, this application requires the "parent borrower's" sign-in/application information.]
Click on the green "Sign In" button to begin signing in.
STEP 2: Click on:
- "Request a PLUS Loan" (for the credit check) and if the loan is approved...
- "Complete Master Promissory Note" (if you do not already have a Master Promissory Note for B-W on file with the Department of Education Direct Loan Program).
NOTE: Both steps must be complete before the funds can be disbursed.
STEP 3: The Department of Education will transmit loan application information to Baldwin-Wallace College.
STEP 4: Baldwin-Wallace College will finalize the loan through the Department of Education.
B-W PLUS deadline: September 30, 2011
Links:
Information on Federal Direct PLUS Loans (from the Department of Education)
Federal Loan Consolidation - For Parent PLUS borrowers who have PLUS loans with different lenders/servicers and wish to combine their PLUS Loans into one new Consolidation Loan.
What if my Direct PLUS Loan is denied?
If a PLUS Loan is denied, a parent borrower can add an endorser or a student can request additional Unsubsidized Stafford Loan by submitting the following electronic form:
PLUS Denial/Additional Unsubsidized Stafford Loan Request Form
You may also wish to obtain an Direct PLUS Loan Endorser (someone who is willing to repay the Direct PLUS Loan if the borrower does not ). Endorsers are asked to complete the online form through the Department of Education: Information for Direct PLUS Endorsers
Deferment:
You may postpone repayment on your Parent PLUS loan until six months after your dependent student leaves school or drops below half time. During this postponement period, you will receive interest statements and have the option to pay the accrued interest. If you choose not to make any interest payments, the unpaid accrued interest will be capitalized.
Parent PLUS Deferment Information from the Department of Education
Loan History:
National Student Loan Data System (NSLDS) - This is the Federal Department of Education's database for keeping track of all federal loans (including PLUS Loans). If you log in to this site, you will find a wealth of information on your PLUS Loan History.
Repayment Calculator - This handy tool will help calculate an estimated monthly payment.
Federal Direct PLUS Loan Change Request Form - This form should be used by parent borrowers who wish to decrease, increase, or cancel their Federal Direct PLUS Loan
Direct Loan Servicing Site - For information regarding Direct Loan repayment
275 Eastland Rd.