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Office of Student Aid : Graduate Students : Loans : The Federal Direct Graduate PLUS Loan

2011-12 Federal Direct Graduate PLUS Loan

Penn State participates in the Direct Lending Program with the U.S. Department of Education. This program allows independent graduate students to borrow a federal Direct Graduate PLUS Loan to help pay for educational expenses.

  • Easy loan application process through PLUS Request Form on eLion and convenient MPN signature process on StudentLoans.gov
  • Borrow up to the total estimated cost of attendance minus all other sources of financial aid
  • 7.9 percent fixed interest rate
  • Required net fees of 2.5 percent deducted from each loan disbursement
  • Option to defer repayment while you are enrolled in school

Eligibility

  • You must complete the FAFSA and be enrolled at least half-time (5 credits) in a degree program and meet all other eligibility requirements, which includes maintaining the University's Satisfactory Academic Progress Standards.
  • You, the borrower, consents to a credit check by the U.S. Department of Education by submitting the PLUS Request Form through eLion.
  • 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.

Borrowing Limits

  • Yearly borrowing limits are equal to your cost of attendance (tuition, fees, room and meals, books, transportation, and supplies) minus other financial aid you receive. You can view your estimated cost of attendance through the Student Aid Summary on eLion.
  • 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.
  • We recommend waiting until you receive the tuition bill (eBill) before applying for the Graduate PLUS Loan.

Applying

To request a Graduate PLUS Loan, you will need to follow these steps after completing the 2011-12 Free Application for Federal Student Aid (FAFSA):

  1. Complete the PLUS Request Form, available from the "Students" menu on eLion.
    • Complete a PLUS Request Form for each loan period you are requesting a Graduate PLUS Loan (i.e. fall only; spring only; or fall/spring combined).
    • Do not submit multiple request forms for the same loan period, unless you intend to increase your Graduate PLUS Loan amount. Be sure to review the specific increase instructions on the request form. Submitting multiple requests may delay your aid process. Wait for the results of your credit check.
  2. E-sign the Graduate PLUS Loan Master Promissory Note (MPN) online at StudentLoans.gov.
    • Sign in to StudentLoans.gov using your Federal Student Aid PIN.
    • After you sign in, choose Complete Master Promissory Note and then select "Graduate PLUS". Follow the four-step process listed on StudentLoans.gov to sign your MPN.
    • 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 in eLion, the U.S. Department of Education will check your credit history. To receive an approval, you 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 you and electronically transmit the results to the University, typically within 7-10 business days.

  • Credit Approved Graduate PLUS Loans with a signed MPN appear as a credit on your tuition bill (eBill)
  • Credit Denied Graduate PLUS Loans do not appear on your tuition bill (eBill).
    • If denied, you 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.
    • An endorser is someone who agrees to repay the PLUS Loan if the borrower does not repay the loan.
    • If you are denied and then utilize an endorser to gain an approved Graduate PLUS Loan, you will need to sign a new MPN at StudentLoans.gov for each endorsed PLUS Loan.
    • You 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 check is approved and a valid MPN is on file, the Graduate PLUS loan funds will be applied toward payment of tuition and fees, room and board, and other University charges on your tuition bill (eBill).
  • If you apply for a fall/spring combined loan period, you can expect the loan to be split in two equal installments.
  • Loan decreases can be requested by contacting the Office of Student Aid via e-mail or by calling 814-865-6301.
  • Loan increases can be processed by completing another PLUS Request Form on eLion for only the additional amount needed.

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. To learn more about Penn State's refund policy, please visit the Office of the Bursar Web site.

Repayment and Deferment

After you graduate, leave school, or drop below half-time enrollment, you have a six month period of time before you have to begin repayment. This six month period of time is called the "grace period". Your federal loan servicer will provide information about repayment and will notify you of the date your loan repayment begins.

You will be able to choose a repayment plan that meets your needs. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Generally, you’ll have from ten to twenty-five years to repay your loans. Our office recommends that you explore the Direct Loan Repayment Plans and Calculators for more information about the repayment plans and to calculate your estimated repayment amount under each of the different plans.

Federal Loan Servicers

For questions about loan repayment or deferment, you can contact your federal loan servicing center. Not sure who your federal loan servicer is? Look it up on National Student Loan Database SystemSM 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

MOHELA
Phone: 888/866-4352
TDD/TTY: 636/532-5189
Overseas: 888/866-4352
Web site: www.mohela.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

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