Federal Plus Loans for Undergraduates
- What is Plus Loan?
- Who is Eligible ?
- Borrowing Limits
- Application Process
- PLUS Loans for Graduate Students
PLUS Loans
This federal loan is for parents of dependent undergraduate students in a degree seeking program and is not based on financial need. This loan can help you (the parent) meet the costs of a college education and is used by many University of Missouri-St. Louis parents to pay the family’s expected contribution (the out of pocket amount you pay towards your child’s education). The decision to approve or deny the loan is based on the results of a credit check that is conducted by the lender.
Who Is Eligible
Parents, adoptive parents, and stepparents of dependent undergraduate students attending college at least half time in a degree seeking program are eligible for PLUS loans. Borrowers must be U.S. citizens or eligible residents. Loan approval is subject to credit criteria established by the U.S. Department of Education and your lender. A credit report will be obtained by your lender from a national credit bureau once you apply. We also have more information on the PLUS Loan program for Graduate Students.
Borrowing Limits
An UM-St. Louis parent may borrow up to the total annual cost of education, including educational fees, books, living and travel expenses, less any financial aid for which the student is eligible. The Student Financial Aid Office will determine your amount of loan eligibility.
Application Process
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Step 1: Pre-approval – Complete the PLUS Pre-Approval online by clicking on one
of the lenders listed in the table below.
If you choose
a different lender, you should contact them directly to
apply. A lot of lenders have online processes to help with
applying. If your application is approved, the lender will
notify our office of the approval and ask that we certify
the loan.
In addition to the PLUS loan pre approval, you must complete either a FAFSA (Free Application for Federal Student Aid) or a PLUS Student Eligibility Form. You can complete the FAFSA at the Department of Education website www.fafsa.ed.gov or pick up a paper application from our office. Our Federal School Code is 002519. You can pick up the PLUS Student Eligibility Form from our office or Download PLUS Student Eligibility Form 2007-2008. The PLUS Student Eligibility Form is required only if the student has not filed a FAFSA.
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Step 2: Promissory note - The lender will send you a promissory note with instructions
to complete and sign the note and return it to them, if
necessary. If you previously signed a Master Promissory
Note, you do not need to sign a new one. Your lender will
contact you about this.
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Step 3: Loan Certification –
The UM- St. Louis Student Financial Aid Office will certify
your PLUS loan request and submit it for final approval,
guarantee and disbursement.
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Step 4: Loan Disbursement – PLUS loans are disbursed in two disbursements directly
to the school via electronic transfer (EFT). Funds are directly
deposited into the student’s school account upon verification
of your student’s enrollment. There is a fee of no
more than 4% of the gross disbursement amount deducted from
each disbursement by the lender prior to the transfer of
funds.
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Step 5: Overpayment – If you have any funds available after what is owed
directly to the University, the overpayment may be released
to the parent at the address listed on the PLUS Loan Application.
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Step 6: Loan Repayment –
Repayment of the PLUS begins while your student is enrolled,
about 30-60 days after the loan is disbursed. You will receive
a payment coupon book or statement from your loan servicer
indicating the due date and amount of your loan payments.
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