Federal PLUS Parent Loan Information

DEADLINE TO HAVE YOUR FINANCIAL AID APPLICATION BE CONSIDERED FOR A DEFERMENT OF FALL CHARGES IS

AUGUST 8, 2008

 

Deadline to have Financial Aid Applications for Summer finalized has passed.  The deadline was May 23, 2008.

In addition to the on-line PLUS application, you must also file the FAFSA AND the Plus Loan Request Form. 
APPLY FOR A PLUS LOAN NOW!!! - Click here 

Click here to review the difference between the PLUS Loan and Alternative Loans.

PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. 

Apply for a PLUS Loan NOW!!!
Enrollment and Satisfactory Academic Progress
Are there any borrowing requirements my parents have to meet?
How much can my parents borrow?
What's the interest rate on PLUS Loans?
How will my parents be paid?
Will my parents have an opportunity to cancel their PLUS Loan after they apply?
Is there a charge for a PLUS Loan?
When do my parents begin repaying a PLUS Loan?
Is it ever possible to postpone repayment of a PLUS Loan?
Can a PLUS Loan be discharged (canceled)?
How do my parents apply for a FFEL PLUS Loan?
How can my parents find a lender?
How do my parents pay back the loan?
Can PLUS Loans be consolidated?
 
 

Enrollment and Satisfactory Academic Progress

All financial aid is awarded subject to acceptance or readmission to the University as a regular degree seeking student. A student is eligible for financial assistance if she/he maintains satisfactory academic progress. This progress is reviewed at the end of each spring and/or summer term for the succeeding academic year. Satisfactory progress for financial aid purposes requires that the student maintain a minimum gpa and make progress toward their degree.

The minimum Satisfactory Academic Progress standards required to receive aid is available from the Financial Aid Web Site. It is also listed in the Academic Policies section of the Radford University Catalog. Fall applicants who failed to meet the minimum standards will have their academic records reviewed at the end of fall semester. At this time financial assistance, if available, may be awarded to students who have reached the satisfactory level. A student who wishes to appeal the denial of financial aid must first have his/her case reviewed by their Financial Aid Counselor. If the student is not satisfied with the Director's decision, a further appeal can be made to the Director of Financial Aid. The appeal form is available in the Financial Aid Office or on the RU Financial Aid website.

Are there any borrowing requirements my parents have to meet?

Yes. To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. If they don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if your parents should fail to do so. Your parents might also qualify for a loan even if they don't pass the credit check if they can demonstrate that extenuating circumstances exist. You must meet the general Undergraduate eligibility requirements (Graduate students are not eligible for PLUS Loans) for federal student financial aid. Your parents must also meet some of these general requirements. For example, your parents must meet citizenship requirements and may not be in default or owe a refund to any SFA Program. 

If your parent is denied a Parent Loan, you may apply for an additional unsubsidized Stafford Loan.  You will need to send a copy of the denial to the RU Financial Aid Office, complete the Free Application for Federal Student Aid (FAFSA),  and complete an "Additional Loan Request" form that may be obtained from the RU Financial Aid Office. 

How much can my parents borrow?

The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $6,000 and you receive $4,000 in other financial aid, your parents could borrow up to--but no more than--$2,000.  You may want to use one of the calculators that are available on the cost of attendance page.

What's the interest rate on PLUS Loans?

The interest rate for loans disbursed after July 1, 2006 is fixed at 8.5%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

To estimate payments on a PLUS Loan, you may use the payment calculators on the finaid website.  PLUS loans have a maximum repayment period of up to 10 years. Repayment begins 60 days after the loan is disbursed.

How will my parents be paid? 

For a FFEL PLUS Loan, the loan funds will be sent to RU by the lender.  In most cases, the loan will be disbursed in at least two installments (no installment can be greater than half the loan amount).  The funds will first be used to pay for your tuition and fees, room and board, and other school charges.  If any loan money remains, your parents will receive the amount as a check or in cash, unless they authorize it to be released to you or to be put in your school account.  Any remaining loan money must be used for your education expenses.

At Radford University most lenders send loan funds by Electroinc Transfer.  Parents using lenders, who do not participate in Electronic Fund Transfer, will will send the funds by paper check to Radford University. These checks are co-payable to Radford University and the parent. When the parent applies for the PLUS Loan, student accounts will contact the parent regarding the disbursement of the funds. When the Student Accounts Office receives the PLUS Loan money, a letter will be sent to the parent indicating that the funds have been received. If the PLUS Loan money is delivered by Electronic Fund Transfer (EFT), any money owed to Radford University will be automatically deducted from the loan amount before the excess money is deposited in the student's checking or savings account. If the PLUS Loan funds are delivered as a check and the student owes money to Radford University on his/her student account, the check will be sent to the parent for their endorsement and then returned to Radford University to be applied to the student's account. After all charges are paid, a refund will be sent to the student, unless the parent has made other arrangements with Student Accounts. If the PLUS Loan funds are delivered as a check and the student does not owe anything on their student account, the check will be endorsed by Radford University and forwarded to the parent.

Will my parents have an opportunity to cancel their PLUS Loan after they apply?

Yes. Radford University will notify your parents in writing whenever it credits your account with your PLUS Loan funds. Your parents may cancel all or a portion of their loan by informing your school that they wish to do so within 14 days after the date that Radford University sends this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.

Is there a charge for a PLUS Loan?

Your parents will pay a fee of up to 4 percent of the loan.  This fee is deducted proportionately each time a loan payment is made.  For a PLUS Loan, a portion of this fee goes to the federal government to help reduce the cost of the loans.  Also, if your parents don't make their loan payments when they're scheduled, they may be charged collection costs and late fees.

When do my parents begin repaying a PLUS Loan?

Generally, repayment must begin within 60 days after the final loan disbursement for the academic year.  There is no grace period for these loans.  This means that interest begins to accumulate at the time the first disbursement is made.  Your parents must begin repaying both principal and interest while you're in school.

Is it ever possible to postpone repayment of a PLUS Loan?

Yes. Under certain circumstances, your parents can receive a deferment or forbearance on their loan.  Some conditions for eligibility and procedures for requesting a deferment or forbearance that apply to Stafford Loans also apply to PLUS Loans.  However, since all PLUS Loans are unsubsidized, your parents will be charged interest during periods of deferment or forbearance.  If they do not pay the interest as it accrues, it will be capitalized.

Can a PLUS Loan be discharged (canceled)?

Yes, under certain circumstances. A discharge releases your parents from all obligation to repay the loan. A complete listing of discharge conditions is given in the Discharge/Cancellation Summary.

Your parents' loan cannot be discharged because you didn't complete your program of study at your school (unless you were unable to complete the program because the school closed), didn't like the school or the program of study, or didn't obtain employment after completing the program of study.

For more information about loan discharge or repayment, Radford University PLUS Loan borrowers should contact the lenders or agencies that hold their loans.

How do my parents apply for a FFEL PLUS Loan?

Your parents may apply for a PLUS Loan on the web if the lender allows web applications.  Otherwise, you may obtain a loan application from the lender.  You will also need to file the Free Application for Federal Student Aid (FAFSA).  This can be done at www.fafsa.ed.gov.

RU will evaluate student eligibility, complete the school information, and send the application to the lender or guarantee agency for evaluation.  Families do not have to establish need to obtain a PLUS Loan, however, there are several edits, such as citizenship that must be checked before we can certify a PLUS loan.  This is done through the FAFSA application.  

How can my parents find a lender?

The Financial Aid Office will process any appropriate loan application that you submit.  To check the status of your PLUS Loan application at Radford University, you may use the  Radford University Student Information system.
 

Although you are borrowing from a lender, many lenders contract with other agencies to collect the loans.  Servicers will be the ones that you will be working with during repayment of your loan.  Lenders may also sell your loans to other organizations, so it is very important to review materials that you receive from your lender or servicer.  Radford University will certify a loan for you through any lender that you choose.

Lender previously used by Radford University students: AMS Bank of America Bayport Federal Credit Union Chartway Federal Credit Union Chase Citibank Citizens Banik Discover Student Loan Dupont Community Federal Credit Union EdAmerica EFSI Key Bank Langley Federal Credit Union Navy Federal Credit Union Nelnet NellieMae Northwest Federal Credit Union NW Federal Credit Union PNC Bank Pentagon Federal Credit Union Richmond Postal Credit Union Sandy Spring Bank Salem VA Medical Center Credit Union Salliemae Southwest Student Services Suntrust Bank Wachovia Bank

Although the Federal PLUS Loan program has federally mandated options, such as interest rates, many lenders offer additional benefits for the loans.  Lenders can change these benefits at any time and without notice.  These benefits may be offered at this time for Radford University students and may not be offered for borrowers attending other institutions.  Click here for the list of lenders.

 

How do my parents pay back the loan? 

The lender will arrange a repayment schedule. The schedule will provide for a minimum of $600 to be paid annually and a maximum repayment period of 10 years (excluding periods of deferment and forbearance). 

To estimate payments on a PLUS Loan, you may use the payment calculator on the finaid page. PLUS loans have a maximum repayment period of up to 10 years. The current interest rate is fixed at 8.5%. Repayment begins 60 days after the loan is disbursed.

Can PLUS Loans be consolidated?

Yes. For additional information on loan consolidation, please visit your lender's website, the USA Group web site or Loan Consolidation in "The Student Guide" (published by the U.S. Dept. of Education).

APPLY FOR A PLUS LOAN NOW!!! - Click here   Click here to complete the FAFSA.  The FAFSA results must be into us before we can certify a PLUS Loan.