Federal Direct PLUS Loan - Columbia College Chicago

Federal Direct PLUS Loan
colum.edu/sfs
NEXT STEPS AND PROCESSING
What are my options if my credit has
been denied?
The recommended way to have an
endorser cosign on the PLUS is to have
him or her visit studentloans.gov, sign in
and click on Endorse a PLUS Loan.
You will want to give your endorser the
‘Award Identification Number’ that is listed
in the credit decision notice that was
emailed to you or by clicking on ‘Direct
PLUS Loan Requests’ on studentloans.
gov. To learn more, contact Direct Loan
Applicant Services at 1.800.557.7394.
If your Federal Direct Parent PLUS Loan
application has a declined credit decision due
to adverse credit history you can continue
with the following options.
1.
2.
Select Undecided or Not Interested
and the credit decision will remain
denied. Then your student will be reviewed
for an additional $4,000–$5,000 in
Direct Unsubsidized Loans per academic
year. The amount is determined by
your student’s grade level, for example,
freshman and sophomores may receive
up to $4,000 and juniors and seniors
may receive up to $5,000.
Select Endorser to seek to be
approved for the PLUS Loan. This option
allows you to add another adult to
endorse or cosign on the denied loan.
An endorser is someone who agrees to
repay the Direct PLUS Loan if you, the
borrower, cannot meet the repayment
terms of the loan. One limitation is
that the endorser may not be your student
on whose behalf you applied for a PLUS
Loan. Borrowers approved with a cosigner
will be required to complete PLUS Entrance
Counseling on studentloans.gov.
3.
Select Appeal to seek to be approved
for the PLUS Loan. The appeal process
allows you to submit additional
information directly with the Department
of Education’s origination center,
Direct Loan Applicant Services, to review
the credit decision. To learn more,
contact Direct Loan Applicant Services at
1.800.557.7394. Borrowers approved as
a result of an appeal will be required to
complete PLUS Entrance Counseling on
studentloans.gov.
NOTE: SFS delays additional processing for
14 days while awaiting your approved endorser
or appealed credit decision. If there aren’t
additional updates on the credit decision, then
your student’s award letter will be reviewed
for the additional $4,000–$5,000 per
academic year in Direct Unsubsidized Loans.
How long will it take for my loan to
be processed?
PLUS Loan funds are credited directly to your
student’s account at Columbia College Chicago.
Once a PLUS Loan is approved, your next step
is to submit the Parent Master Promissory Note
(MPN) on studentloans.gov. The MPN is the
agreement with the lender on repayment terms
and conditions for a 1 year term or a 10 year
term. In order to have your PLUS Loan disburse
by the first day of classes, the MPN must be
completed by:
•
•
June 1—Fall Semester
November 1—Spring Semester
For the general process (not including
appeals, subsequent applications or endorser
applications) your student is sent a new
Award Letter in his or her Loopmail listing the
PLUS Loan 7–14 days from the date of the
approved PLUS Loan application. If the PLUS
Loan credit decision was declined, the
student’s additional Direct Unsubsidized Loan
can be added to a new Award Letter 7–14
days from the date of the declined PLUS Loan
application, which is emailed to your student’s
Loopmail. The loans disburse after they
are added to your student’s Award Letter.
If your PLUS Loan was secured prior to the
start of the semester, the loan normally
Federal Direct PLUS Loan
colum.edu/sfs
CONTINUED
disburses 1 week prior to the start of each
semester. Finally, you as the borrower
will be notified via the email address you
provided on the PLUS Loan Application
within 3 days of the disbursement to your
student’s account.
I need to change my loan amount.
How do I do that?
You have several options related to making
changes to your loan. Select the recommended
methods listed below depending on what
you are trying to accomplish. Using one of the
recommended methods reduces the total
processing time for your loan.
1. Cancel My PLUS Loan
You can cancel an approved PLUS Loan
by completing the Parent Loan Adjustment
Request found on colum.edu/
resourcecenter. Instructions on how
to submit the request to SFS are provided
at the bottom of the form.
You can request a cancellation to a PLUS
Loan at any time prior to disbursement.
Once a loan disburses, you have
30 days from the date of disbursement to
cancel the loan using the loan adjustment
form. After the 30 day deadline, you
can cancel all or a portion of your loan
by repaying the amount to your Direct
Loan Servicer.
2. Reduce My PLUS Loan
You can reduce the PLUS Loan amount
by completing the Parent Loan Adjustment
Request found on colum.edu/
resourcecenter. Instructions on how to
submit the request to SFS are provided at
the bottom of the form. PLUS Loans are
subject to a 4.288% origination fee for
2014–15, and are subject to change for
2015–16. When completing the form to
reduce the loan amount, indicate the gross
amount of funds you wish to borrow per
semester. For example, if you reduce
the PLUS disbursements to a gross amount
of $5,000 each semester, the net funds
that will post to your student’s account
each semester will be $4,786.
3. Increase My PLUS Loan
You can increase your loan by submitting a
new PLUS Request at studentloans.gov.
Will I need to submit additional
documents?
Generally, if your information is listed on your
student’s FAFSA (Free Application for Federal
Student Aid) for the same academic year
in which you applied for the PLUS Loan, no
additional documents are needed. If any
documentation is needed to verify personal
identification information, SFS will follow
up through the email address listed on your
PLUS application.
However, you could be asked to submit
additional documents if your information is
not listed on your student’s FAFSA. In this
situation, SFS will request a signed, photocopy
of your social security card and a driver’s license
to continue processing the requested loan.
Can I select who should receive the
student refund from my approved loan?
During the application process you would have
originally selected any excess funds to be
issued to you, the borrower, or the student. If
you decided to change to whom the refund will
be issued (parent/student) after an application
has been processed, you can complete a
Refund Release Form found at
colum.edu/resourcecenter with Student
Financial Services.
Refunds generated as a result of the Parent
PLUS Loan will be issued based on the refund
preference you indicate on the PLUS Loan
Application, either to your student or to you.
SFS encourages all students and/or borrowers
to sign up for direct deposit to expedite the
refund process. Learn more about the refund
process and direct deposit at colume.edu/refunds.
Your student will need to set you up as an
Authorized Payer before you can sign up for direct
deposit. Visit colum.edu/waystomakeapayment
to learn about Authorized Payers.