Federal Direct Parent PLUS Loan

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    The Federal Direct Parent PLUS Loan is a credit-based loan with a fixed interest rate of 6.84%, with default and up front origination fees of 4.292% (beginning for 2015-2016). 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 0.95708 (= 4.292%).
    Request $10,448 ($10,000/0.95708 = $10,448) to receive a total of $10,000 (NOTE: Loans disbursing after October 1, 2015 and before October 1, 2016 will have a loan fee of 4.272%)

    4. Initiate a Federal Direct Parent PLUS Loan application and sign a master promissory note at http://www.studentloans.gov(if you have questions when on this site, you can reach a customer service representative at 1-800-557-7394).

    1. Once on www.StudentLoans.gov simply click on "Sign In" on the left side of the page; A parent must sign in using FSA ID.
      *Note, do not use the student's FSA ID in this section*
        *Also, if you forgot or don't have a FSA ID, you can go to StudentAid.gov/fsaid for more information. 
    2. After the parent signs in, click on "PLUS Loan Process/Request Direct PLUS Loan".
    3. Complete the required items then "submit" the PLUS Loan request.
    4. If you are credit approved you will then click on "Home" to return to the http://www.studentloans.govhomepage to continue to the next step of the Federal Direct Parent PLUS Loan process, which is signing a Federal Direct Parent PLUS Loan Master Promissory Note.
    5. Click on the "My Profile" button found in the top box, next to your name.
    6. Click on "Complete MPN" or "Master Promissory Note".
    7. Click on "Parent PLUS".
    8. Complete the required items and then "Submit" the Master Promissory Note.

    If you have received an advese credit decision, but are eligible due to documented extenuating circumstances or by obtaining an endorser, you will be required to complete Federal Direct Parent PLUS Loan Entrance Counseling.


    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 180 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, http://www.nslds.ed.govor call the Federal Student Aid Information Center at 800-4-FED-AID.


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

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