Parent Plus Loan Request Form Florida Memorial University (Page 2 of 2) in pdf

This application must be completed by the parent or legal guardian of the qualifying student. Completed applications may be

brought into the Office of Financial Aid, or faxed to 305-623-4233. Please subtract the total amount on your student’s award letter

from the cost of attendance to determine the amount needed in a Direct Parent Plus Loan. Enclosed is pertinent information

regarding the Federal Direct Loan Process that you should be aware of.

Parent eligibility requirements for a Direct PLUS Loan

You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has

remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school that

participates in the Direct Loan Program. For financial aid purposes, a student is considered "dependent" if he or she is under 24,

unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted.

Additional requirements to receive a PLUS loan

Parent PLUS loan borrowers cannot have an adverse credit history (a credit-check will be done). In addition, parents and their

dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an

overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid

programs.

Applying for a PLUS Loan and the Master Promissory Note (MPN)

To take out a Direct Loan for the first time, you must complete a PLUS Application and PLUS Master Promissory Note (MPN). The

MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of

Education. It also explains the terms and conditions of your loan(s).

You must complete the MPN electronically. You can do so online at the Direct Loans website StudentLoans.gov. If you are

borrowing Direct PLUS Loans for more than one student, you'll need to complete a separate MPN for each one. To complete an

MPN online, you will be required to use your Department of Education-issued PIN (not your child's). If you do not have a PIN, you

may request one from the website

pin.ed.gov.

Credit check & endorser alternative

If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an

adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The

endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.

Loan limits, interest rate, and loan charges

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child's education minus any other

financial aid received, such as a Direct Subsidized or Unsubsidized Loan. The school will determine the actual amount you may

borrow. The interest rate for Direct PLUS Loans is a fixed rate of 6.41%. Interest is charged on Direct PLUS Loans during all

periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS

Loans, contact the Direct Loan Servicing Center. In addition to interest, you pay a loan origination fee that is a percentage of the

principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans.

This fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you

have to repay.

Loan repayment

There is no grace period for Direct PLUS Loans; the repayment period begins 60 days after your school makes the last

disbursement of the loan. Generally you will have 10 to 25 years to repay your loan.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional

Direct Unsubsidized Loan funds.

Member-The College Fund/UNCF

Florida Memorial University • 15800 NW 42

Avenue • Miami Gardens, Florida 33054-6199 • Phone: (305) 626-3742 Website:

Parent Plus Loan Request Form Florida Memorial University Page 2