Direct Parent PLUS Loan Process
2012-13

A Free Application for Federal Student Aid (FAFSA) must be completed for the student, using the student's and parents' information, before a Direct Parent PLUS Loan can be processed.

ALL parents who wish to borrow a Parent PLUS Loan on their student's behalf who do not already have a Direct Parent PLUS Loan Master Promissory Note (Direct PLUS MPN) on file MUST complete a Direct PLUS MPN. In addition, the parent must also complete a Direct PLUS Loan Request Form.

1- Direct Parent PLUS Loan Request Form. Parents should complete this form and return it to the UW-La Crosse Financial Aid Office in order to apply for a Direct Parent PLUS Loan.

2- Direct Parent PLUS Loan Master Promissory Note (Direct Parent PLUS MPN). The parent MUST complete a Direct Parent PLUS MPN.

STEP 1 - (Sign in) You will be asked to enter your Social Security Number, the first two (2) characters of your last name, your date of birth and your PIN. The PIN requested is your Department of Education PIN (used to sign the FAFSA). If the parent does not have the DOE PIN, they can obtain one at www.pin.ed.gov.

STEP 2 - Choose "Sign Master Promissory Note". (Do NOT choose Start PLUS Application Process).

STEP 3 - On the Master Promissory Note page, choose Parent PLUS and that will take you into the necessary screens for the Parent PLUS Loan Master Promissory Note.

Parent PLUS Loan funds are applied electronically to the student's bill.

All PLUS loan proceeds in excess of charges owed to UW-La Crosse will be made available to the student unless the parent does not agree.

Eligibility
To be eligible, a parent must:
* be a biological or adoptive parent, or a step-parent whose information was required on the FAFSA
* be a U.S. citizen or eligible non-citizen, and provide a valid Social Security Number
* be creditworthy
The student must:
* be dependent for purposes of financial aid
* be enrolled at least half-time

Disbursement of Funds
PLUS Loan funds will be disbursed electronically and applied directly to the student's university bill. ANY RESULTING CHANGE CHECK WILL BE DISBURSED TO THE STUDENT unless the parent indicated otherwise on the Direct Parent PLUS Loan Request Form.

Interest Rate, Fees, etc.
Interest Rate: The interest rate for Direct Parent PLUS Loans is a fixed rate of 7.9%. Interest begins accruing once the loan is disbursed and repayment begins approximately 60 days after the loan is fully disbursed. Deferment is available until 6 months after student is no longer enrolled at least half time but interest is accruing. (Parents must request the deferment of payments)
Fees: Origination Fee of 4% is assessed prior to disbursement.
Annual Loan Limit: Cost of student's education minus other financial aid.
Cumulative Loan Limit: None
Repayment term: 10 years. Deferment and forbearance options available.

ADVERSE CREDIT
Parents who believe that they would be denied the Federal Direct Parent PLUS Loan due to adverse credit may complete the Parent PLUS Credit Check Request Form, authorizing a credit check to be completed to determine eligibility.

If the result of the credit check is a denial, the student will be notified of additional Federal Direct Unsubsidized Loan eligibility.

If the credit is approved, the Financial Aid Office will notify the parent of the approval and the additional requirements should they choose to complete the Federal Direct Parent PLUS Loan process.

IN-SCHOOL DEFERMENT REQUEST FORM
Parents who borrow a Parent PLUS Loan on their student's behalf may defer the payment of the loan by completing an In-School Deferment Request Form. Parent PLUS Loans do not go into repayment until the loan is fully disbursed (usually a loan is fully disbursed around the first day of the spring semester if the loan is for the academic year). At that time, the parent can complete the required In-School Deferment Request Form and mail it to the Department of Education at the address on the form. Interest will continue to accrue while the loan is in deferment.

The In-School Deferment Request Form will require verification of the student's enrollment. To print out an enrollment certificate to send in with the Request Form, the student should go to their WINGS Student Center. Under Enrollment Resources, the student should choose Enrollment Verification, then choose Enrollment Certificate. This Enrollment Certificate should be sent in with the Request Form to satisfy the requirement for Section 4. (You will not need to submit the Request Form to an Authorized Official to complete Section 4 because the Enrollment Certificate satisfies the requirement).