Pitt-Bradford participates in the Direct Lending Program with the U.S. Department of Education. This Direct Loan program allows parents of dependent undergraduate students to borrow a Federal Direct Parent PLUS Loan to help pay for educational expenses.  

• Complete the parent loan application process through PLUS Request Form.  Once approved complete the MPN signature process on studentloans.gov 
• You can borrow up to the total  estimated cost of attendance minus all other sources of financial aid 
• 7.9 percent fixed interest rate 
• Option to defer repayment while student is enrolled in school 

Eligibility  

• Student must complete the Free Application for Federal Student Aid (FAFSA), must be enrolled at least half-time (6 credits) in a degree program and meet all other eligibility requirements, which includes maintaining the University's Satisfactory Academic Progress Standards. 
• Borrower must be either a biological or adoptive parent, or step-parent. Grandparents or other relatives cannot apply as the borrower, but can only act as endorsers, if the parent is denied a Parent PLUS Loan. 
• Parent borrower and their student must be U.S. citizens or  eligible noncitizens and not be in default on federal aid.  
• Parent borrower consents to a credit check by the U.S. Department of Education by submitting the PLUS Request Form.  
• Debt to income ratio, credit score and employment status are not taken into consideration in the credit check process.  Adverse credit typically results in a denied credit check.  
• If the credit is denied, additional unsubsidized Direct Stafford Loan will be awarded automatically to the student as a result. If the same parent borrower or another parent borrower is later approved for the Parent PLUS Loan through a credit appeal or an endorser, the student’s additional unsubsidized Direct Stafford Loan will be cancelled.  

Before Applying Consider the Interest Rate, Fees and Borrowing Limits  

•  Fixed interest rate of 7.9 percent is charged on the loan from the time funds are disbursed until it is paid in full. 
•  Origination fees are 4.0 percent. 
•  Parent borrowers should take the net 4.0 percent fee into consideration when determining the amount to borrow. To determine the gross amount to borrow, divide the net amount by .96 and request that total.
  
  Example:  
• To net $10,000; divide $10,000 by .96, which equals $10,417.  
• Therefore, you would request a total of $10,417 to net $10,000.  
• Yearly borrowing limits are equal to your student's  estimated cost of attendance (tuition, fees, room and meals, books, transportation, and supplies) minus all other financial aid your student receives.  

                Example:   

•  Yearly cost of attendance=$27,000 
•  Minus other financial aid=$10,500 
•  Yearly borrowing limit=$16,500 

•  Loan term dates are fall only, spring only or fall/spring combined. Be sure to take the loan period into consideration when determining the amount to borrow. If you apply for a fall/spring combined loan period, the net loan total will be split equally between fall and spring semesters into two equal disbursements. 

To request a Federal Direct Parent PLUS Loan, parents will need to follow these steps after completing the  Free Application for Federal Student Aid (FAFSA) 

1.  Complete the Federal Direct Parent PLUS Request Form, available through the Financial Aid Web site in “forms available online”.  
2.  Complete a Federal Direct Parent PLUS Request Form for each loan period you are requesting a Parent PLUS Loan (i.e. fall only; spring only; or fall/spring combined). 
3. Do not submit multiple request forms for the same loan period, unless you intend to increase your Parent PLUS Loan amount. E-sign the Parent PLUS Loan Master Promissory Note (MPN) online at  studentloans.gov.  

1. Sign in to studentloans.gov Web site using your Federal Student Aid PIN (same one you use to sign your student's FAFSA).  
2. After you sign in, choose Complete Master Promissory Note and then select "Parent PLUS". Follow the four-step process listed on the  studentloans.gov Web site to sign your MPN.  
3. Note: If you are experiencing technical difficulty signing the MPN online at studentloans.gov, please contact the U.S. Department of Education's customer service center for borrowers’ toll free at 800-557-7394. You can request a paper MPN from our office; however, a paper MPN will take three to four weeks to process—more than double the time it takes to process the MPN online—so it is always best to sign the MPN online if possible.  

Credit Decisions and Credit Appeal/Endorser Options 

After submitting the PLUS Request Form the Office of Financial Aid through the U.S. Department of Education will complete a check of the parent borrower’s credit history. To receive an approval, the borrower cannot have an adverse credit history. The U.S. Department of Education will mail the credit check results (including credit appeal and endorser information, if denied) to the parent borrower and electronically transmit the results to the University, typically within 7-10 business days.  

• Credit Approved Parent PLUS Loans with a signed MPN appear as a credit on the student’s tuition bill (eBill) 
• Credit Denied Parent PLUS Loans do not appear on the student’s tuition bill (eBill); however, additional, limited unsubsidized Stafford loan will be awarded automatically to the student as a result (according to amount request on PLUS Loan Request form up to maximum eligibility).  
  • Borrowers have the option to either appeal the credit decision with the U.S. Department of Education or get an endorser for the loan by following the instructions in their credit decision letter. However, if the parent borrower appeals the credit decision and is later approved, or another parent borrower is later approved, the student will no longer be eligible for the additional unsubsidized Stafford loan. 
   
• An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower does not repay the loan. The endorser may not be the student, but grandparents or other relatives can act as endorsers. 
• Parent borrowers who are denied and then utilize an endorser to gain an approved Parent PLUS Loan will need to sign a new MPN at studentloans.gov for each endorsed PLUS Loan. 
• Parent borrowers can contact Direct Loan Applicant Services at 800-557-7394 for more information regarding their credit denial, credit appeal or endorser process. 

Processing and Receipt of Funds  

• Once the credit decision is approved and a valid MPN is on file, the Parent PLUS loan funds will be applied toward payment of tuition and fees, room and board, and other University charges on the student's tuition bill (eBill). 
• Borrowers that apply for a fall/spring combined loan period can expect the loan to be split in two equal disbursements. 
• Loan decreases can be requested in writing to the Office of Financial Aid.   
• Loan increases can be requested by completing the PLUS Request Form for only the additional amount needed. Additional credit checks are not necessary for increased loan amounts, if submitted within the 90 day approval window. 

Refunds 

• If a credit balance remains after all charges are paid in full on the tuition bill (eBill), the credit (as a check or as a direct deposit to a bank account) will be refunded.  

Repayment and Deferment  

• Repayment period begins on the date the loan is fully disbursed, with the first payment due within sixty days of the final disbursement.  
• The federal loan servicer will provide the borrower information about repayment and will notify the borrower of the date loan repayment begins. Repayments are made to the federal loan servicer that contacts the borrower.  
• Borrowers generally have from ten to twenty-five years to repay the Parent PLUS Loan, depending on which repayment plan he or she chooses. To calculate estimated loan payments, go the Direct Loan Repayment Calculator. To read more about repayment, review the Repayment Information section on the Federal Student Aid Web site.  
• Deferment allows parents to delay repayment until after their student is no longer enrolled at least half-time (6 credits).  

Federal Loan Servicers 

For questions about loan repayment or deferment, a borrower can contact his or his federal loan servicing center. Not sure who your federal loan servicer is? Look it up on National Student Loan Database System^SM or call the Federal Student Aid Information Center at 800-4-FED-AID. 

Direct Loan Servicing Center
Phone: 800/848-0979
TDD/TTY: 800/848-0983
Overseas: 315/738-6634
Web site: www.dl.ed.gov 

FedLoan Servicing (PHEAA)
Phone: 800/699-2908
TDD/TTY: 800/722-8189
Overseas borrowers: 717-720-1985
Web site: www.myfedloan.org  

Great Lakes Educational Loan Services, Inc.
Phone: 800/236-4300
TDD/TTY: 800/236-4300
Overseas: 608/246-1700
Web site: www.mygreatlakes.org  

Nelnet
Phone: 888/486-4722
TDD/TTY: 888/486-4722
Overseas: 303/696-3625
Web site: www.nelnet.com 

Sallie Mae
Phone: 800/722-1300
Fax: 866/266-0178
TDD/TTY: 877/713-3833
Overseas: 254/554-4535
Web site: www.salliemae.com 

Mohela 
Phone: 888/866-4352
Fax: 888/866-4708
633 Spirit Drive
Chesterfield, MO 63005

ESA/EDFinancial 
298 N. Seven Oaks Drive
Knoxsville, TN 37922 

CornerStone- UHEAA 
60 South 400 West
Salt Lake City, UT 84101-1284