- What is a PLUS?
- Who can take out a PLUS?
- How do I apply for a PLUS?
- Where does the money for the PLUS come from?
- Are there any fees?
- What is the interest rate on the PLUS?
- How much can I borrow? How much should I borrow?
- How is the PLUS disbursed?
- What if I borrow more than my student's bill, what happens to the excess funds?
- When do I begin repaying the PLUS? How long do I have to repay the loan?
- How long does the process take?
PLUS Loan Information
What is a PLUS?
A FederalPLUS (Parent Loan for Undergraduate Students) is a loan to the parent of a dependent undergraduate student for educational expenses.
Who can take out a PLUS?
Only a parent of the student may request a PLUS. A parent is defined as the biological parent or adoptive parent. A stepparent may apply for a PLUS if the stepparent’s information would be included on the student’s Free Application for Federal Student Aid (FAFSA). Parent applicants must have good credit histories (absence of bankruptcies within the past 5 years, liens, or delinquent payments on their credit history) to qualify.
How do I apply for a PLUS?
1) Complete a Federal
PLUS Request and Authorization for Release of Excess Funds form and return
it to the UW-Stout Financial Aid Office
2) Complete PLUS MPN (Master Promissory Note) online at http://www.uwstout.edu/finaid/plusapp.htm: click on PLUS MPN (step2). if you do not wish to complete it online, complete step 1 only and PLUS MPN will be mailed to the parent by Great Lakes Education Loan Services, Inc. after school certification.
Where does the money for a PLUS come from?
Are there any fees?
Each PLUS
is subject to an origination fee of 4%. This fee is automatically deducted from each disbursement. The fee is used by the Department of
Education to reduce the costs of this loan program.
What is the interest rate on the PLUS?
How much can I borrow? How much should I borrow?
How is the PLUS disbursed?
If you have selected a lender from the list, the PLUS finds will be disbursed electronically to UW-Stout, crediting directly to the student’s bill. A full academic year loan will disburse equally between fall and spring semesters. If you have chosen a lender who is not on the list, be sure to verify with the lender how the funds will be sent to the school.
What if I borrow more than my student's bill, what happens to the excess funds?
By signing the Federal PLUS Request and Authorization for Release of Excess Funds, the parent authorizes any amount over the student’s bill to be processed according to the preference the student selects on their Stout OneCard. If the parent does not want to authorize the release of any excess funds from the PLUS to the student, the parent should contact the UW-Stout Financial Aid Office by email at finaid@uwstout.edu link or phone 715-232-1363.
When do I begin repaying the PLUS? How long do I have to repay the loan?
Repayment of interest and principal begins within 60 days after the loan is fully disbursed. The borrower may elect to postpone repayment by contacting the Borrower Services Departement at 800-236-4300 after recieving the payment schedule. Interest during the postponement can be paid monthly, quarterly or capitalized (quarterly). If repayment is postponed, repayment will begin one day after a six month period following the date the student beneficiary ceases at least ½ time attendance. The standard repayment period is 10 years; however, there is a minimum repayment of $50 per month.
How long does the process take?
Typically from the time the UW-Stout Financial Aid office receives the parent’s Federal PLUS Request and Authorization for Release of Excess Funds form to when the funds are disbursed to campus is 2-3 weeks if a parent must complete a PLUS MPN and does so promptly. However, funds cannot be disbursed to campus until the term has started. Loans for 2008-09 will not be certified by the school untill after July 1, 2008.