The Federal Direct Parent PLUS Loan is a credit-based loan with a fixed interest rate of 7.21%, with default and up front origination fees of 4.288% (beginning for 2014-2015). Students must be enrolled at least half-time in a degree seeking program, be meeting the Federal Academic Progress Standards (SAP), and have a completed FASFA on file for parents to access a PLUS loan. The parent borrower must be either a biological or adoptive parent, or step parent. Parent borrowers and their student must also be U.S. citizens or eligible non-citizens and are not currently in default on Federal aid. Through the Federal Direct PLUS Loan Program, parents of dependent students may borrow up to the cost of education less any other financial aid received by the student. Repayment does not begin until 60 days after the loan is fully disbursed to the school (for a full-year loan, after the spring portion is disbursed to Pitt-Bradford). You may indicate on your Federal Direct Parent PLUS Loan application that you would like an automatic deferment while your student is attending school and/or a request for a 6 month deferment post enrollment. For additional information about the Federal Direct Parent PLUS Loan, please visit www.studentaid.ed.gov. If a parent is denied a Federal Direct Parent PLUS Loan, the student may automatically be considered for an additional unsubsidized Federal Direct Student loan in an amount up to $4,000/year for freshman and sophomores and up to $5,000/year for juniors and seniors. Borrowers also have the option to either appeal the credit decision with the U.S. Department of Education or get an endorser for the loan by choosing the associated bubble on the results page after submitting your online Federal Direct Parent PLUS Loan application at www.studentloans.gov. If there is a Federal Direct Parent PLUS Loan denial and certification of additional unsubsidized Federal Direct Student loan has occurred, the same parent borrower or another parent borrower can later appeal or seek an endorser and be approved. If this is the case, the student’s additional unsubsidized Federal Direct Student Loan will be cancelled. Repayment Options: Additional information regarding repayment can be found at www.StudentLoans.gov.How to Apply: 1. First, complete the Free Application for Federal Student Aid (FAFSA).2. Then, calculate how much you want to borrow and determine the loan period. The total amount you can borrow is equal to your student's Cost of Attendance minus other Estimated Aid (these figures are listed on your student's Student Aid Summary on Pitt-Pay).3. Next, calculate the loan fee. Divide the total loan amount by 0.95712 (= 4.288%).Request $10,448 ($10,000/0.95712 = $10,448) to receive a total of $10,0004. Initiate a Federal Direct Parent PLUS Loan application and sign a master promissory note at www.StudentLoans.gov (if you have questions when on this site, you can reach a customer service representative at 1-800-557-7394).
Please note that it can take approximately 4-6 weeks for a Federal Direct Parent PLUS Loan to be processed; parents are encouraged to file the application early to allow time for the loan funds to arrive at the school. Directions for Changing your Federal Direct Parent PLUS Loan: If you would like to change your Federal Direct Parent PLUS loan, the parent borrower must submit a written request to the Financial Aid Office. Please be sure to sign the request and include a phone number where the parent borrower can be contacted. If you would like to increase the Federal Direct Parent PLUS Loan and it is more than 90 days since the initial credit check was completed, the Parent Borrower will need to complete a new PLUS loan application at www.studentloans.gov.
Federal Loan Servicers: For questions about loan repayment or deferment, a borrower can contact his or her Federal Direct Parent PLUS Loan servicing center. Not sure who your Federal loan servicer is? Look it up on National Student Loan Database System, www.nslds.ed.gov or call the Federal Student Aid Information Center at 800-4-FED-AID.
FedLoan Servicing (PHEAA)Phone: 800/699-2908TDD/TTY: 800/722-8189Overseas borrowers: 717-720-1985Web site: www.myfedloan.org Great Lakes Educational Loan Services, Inc.Phone: 800/236-4300TDD/TTY: 800/236-4300Overseas: 608/246-1700Web site: www.mygreatlakes.org
NelnetPhone: 888/486-4722TDD/TTY: 888/486-4722Overseas: 303/696-3625Web site: www.nelnet.comSallie MaePhone: 800/722-1300Fax: 866/266-0178TDD/TTY: 877/713-3833Overseas: 254/554-4535Web site: www.salliemae.comMohela Phone: 888/866-4352Fax: 888/866-4708633 Spirit DriveChesterfield, MO 63005
ESA/EDFinancial 298 N. Seven Oaks DriveKnoxsville, TN 37922 CornerStone- UHEAA 60 South 400 WestSalt Lake City, UT 84101-1284