The Federal Parent Loan for an Undergraduate Student (PLUS) is a loan for a parent borrower who needs financial assistance in paying for his/her dependent undergraduate college student's educational costs.
You may contact a lender to request a PLUS Loan after May 1, 2009 for the 2009-2010 academic year. This may be done by phone or on-line. You will be required to indicate the amount you wish to borrow from the lender. The lender will process a pre-approval decision over the phone or on-line. Once approved, the lender will notify the Student Aid Office at Skidmore for enrollment certification. Be aware that a PLUS borrower is required to pass an adverse credit check. If the parent is not eligible for a PLUS Loan because of his/her adverse credit, the parent may still qualify by obtaining a credit worthy co-signor.
A parent may borrow up to the total cost of attendance for the academic year minus estimated financial aid received for the requested loan period (September 2009-May 2010). An origination fee and default fee of up to 4% is deducted from the loan at the time of disbursement. The amount of the fee can be added to the loan amount you are requesting. If you student applies for a Federal Stafford Loan, the amount of the load is included in the estimated financial aid. In determining the amount to borrow, include the entire academic year (fall and spring semesters).
The PLUS loan carries a fixed interest rate of 8.5%.
Yes, if the PLUS on the award letter was accepted, on the Certification and Reply Sheet, you must complete the above application process.
If you child is ONLY receiving a PLUS loan the student and borrower is required per federal regulations to complete the PLUS Loan Only Form. Once the completed form is received by the Office of Financial Aid, along with the pre-approval, the PLUS will be certified. A master promissory note will also need to be completed.
A repeat borrower may select a lender of your preference or a lender from out preferred lender list. For additional guidance refer to Tips for Selecting a Student Loan Lender,How Skidmore Selects Lenders for Your Consideration and Disclosure of PreferredLenders 2009-2010. A borrower will suffer no penalty for choosing a lender not on the list. We encourage you to compare information form all providers before deciding on a lender. A paper copy of this information is available by contacting the Office of Financial Aid.
The Master Promissory Note (MPN) is a written promise to pay a lender a fixed amount of money over a specified period of time. You will complete the MPN once for your college student's undergraduate enrollment at Skidmore. If you have more than one child at Skidmore, you must complete an MPN for each child. Each academic year you will be required to request the amount you wish to borrow through the lender. The Master Promissory Note must be on file with the lender in order to disburse funds to Skidmore. Note: Repeat PLUS borrowers must only complete the MPN once for you student's undergraduate enrollment at Skidmore unless you are borrowing from a different lender or servicer.
Once the loan is approved, the lender will mail you a Master Promissory note for signature. Simply fill in all borrower and student information, sign and return it to your lender. You can also print a master promissory note on the lender's website or complete electronically on-line.
To increase or decrease the amount certified, please notify the Office of Financial Aid in writing, or email kcole@skidmore.edu. Skidmore will notify the lender of your request. If the loan has been disbursed, additional funds will be processed as a new loan. Any requests to decrease the loan amount, should take place prior to the loan being disbursed.
PLUS funds are electronically transferred to Skidmore in two disbursements. Generally, there is a disbursement at the beginning of the fall semester and one at the beginning of the spring semester. The loan proceeds are credited directly to your student's Skidmore account.
Repayment begins 60 days after the final disbursement of each loan. The maximum repayment period is 10 years. Upon request to the lender, a borrower may defer loan repayment for any period during, which the student is enrolled half-time.
Please contact the lenders or visit their websites to learn more about the benefits they offer to PLUS borrowers.