PLUS LOAN FAQs

APPLYING FOR THE PLUS 1. What is the Federal Direct PLUS Loan? PLUS Loans are federal loans for graduate students and parents of dependent undergraduate students. The loan is meant to be used once a student has exhausted other federal financial aid programs. 2. How do I apply for a Direct PLUS Loan? You will need to log into www.studentloans.gov and select the option to request a PLUS Loan. Graduate students will select the Graduate PLUS, and Parents will select the Parent PLUS for their dependent undergraduate students. You will need your Federal Student Aid PIN to access this site. If you do not know your PIN you can access it at www.pin.ed.gov. 3. Do I need to fill out a FAFSA to get a PLUS Loan? In order to receive a Direct PLUS Loan, the student must have a completed Free Application for Federal Student Aid (FAFSA) on file at Kent State University. 4. What is the interest rate? The interest rate for a PLUS Loan is currently 6.41% fixed. 5. I'm a Legal Guardian / Uncle / Grandmother - can I take out a Parent PLUS Loan? A foster parent, legal guardian, or a grandparent or other relative is not treated as a parent for purposes of borrowing a PLUS loan unless that person has legally adopted the student. An adoptive parent is treated in the same manner as a biological parent on the FAFSA and for the PLUS Loan Application. A step-parent may borrow a Parent PLUS loan ONLY if their financial information is included on the FAFSA. 6. How often do I need to apply for the PLUS Loan? Typically, borrowers apply yearly for the PLUS loan. Most borrowers calculate what they need for the entire academic year, so would apply for a fall/spring loan. Parent borrowers of a student graduating in the summer or fall semester, should apply for a one semester PLUS Loan. Parent borrowers of students with higher costs in one semester than another (i.e. studying abroad) should apply for a PLUS Loan for an increased amount for the higher cost semester. A separate application and loan amount should be requested for the semester with the regular costs. You may also apply for a PLUS Loan for one semester only, if necessary. The following terms can be used when applying for the PLUS Loan: Fall and spring (Aug May) Fall only (Aug Dec) Spring only (Jan May) Summer only (Jun Aug) Example: A student planning to attend summer, fall, and spring terms would need their parent to fill out two separate applications a fall/spring application, and a summer only application. 7. What is the maximum amount I can borrow for the PLUS? You may not borrow more than the students cost of attendance minus any other financial aid received for the term selected. There is no lifetime limit for the PLUS.

8. Is there a way to defer the PLUS Loan while the student is in school? Direct PLUS Loans first disbursed on or after July 1, 2008 can be deferred while the student is enrolled at least half-time (6 undergraduate credit hours or 4 graduate credit hours), and for an additional 6 months after the student graduates or drops below half-time enrollment. Deferment options can be selected on the PLUS application. 9. When my child is done with school, can I transfer the PLUS Loan to them? No. 10. When will I know if my PLUS Loan is approved? If you apply on the studentloans.gov website, the credit decision will be provided once you submit the application. For the parent PLUS loan, the dependent student must also meet all of the criteria determined by federal regulations, for the parent to receive the parent PLUS loan. 11. How long does it take the PLUS Loan to be processed? There are several steps involved in the processing of the PLUS loan and the length of processing time depends on many variables. Variables include the time of the year (busy season), promissory note completion status, verification completion status, etc. It is recommended to submit the PLUS Loan application as early as possible to ensure funds are available to meet payment deadlines. 12. I am an independent undergraduate student; can I or my parent receive the PLUS Loan? No. Independent undergraduate students are not eligible to receive the PLUS Loan. PLUS APPROVALS 13. My credit was approved for the PLUS Loan, where is the money? Once the PLUS application is received at Kent (and credit is approved), it is reviewed for accuracy and awarded as an actual PLUS Loan that will show on the students financial aid portion of FlashLine. You will have to sign a PLUS master promissory note, and your student will have to meet all of the federal regulations before we can disburse the parent PLUS Loan. Per federal regulations, we cannot disburse the parent PLUS Loan until 10 days before the term begins. 14. What additional steps must I take to receive my loan? If you are eligible for a Direct PLUS Loan, you will be required to sign a Master Promissory Note (MPN) at www.studentloans.gov to agree to the terms of the loan. Graduate and professional students will also be required to complete entrance counseling before receiving the Graduate PLUS Loan 15. Can I use a PLUS Loan for off campus expenses? You may use the loan money you receive to pay for educational expenses as a result of attending school. Education expenses include school charges such as tuition, on or off campus room/housing and board/food, fees, and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer. 16. I was approved for a Graduate PLUS Loan, or a Parent PLUS Loan for my student at another school this year. Do I have to apply again? Yes. You must apply for a new PLUS Loan for Kent State University, and cancel the remaining PLUS Loan at the other school.

17. I already have a PLUS Loan, how do I increase the amount? If you would like to increase your PLUS Loan you must apply for the loan again at www.studentloans.gov . 18. How do I decrease the PLUS Loan amount? The procedures to decrease or reduce the PLUS Loan amount will depend on the time of year and the current status of loan disbursements. If the PLUS funds have not disbursed, contact the Student Financial Aid Office for procedures to reduce the loan. If the loan is fall/spring, the reduction will be done evenly. If one of the disbursements has paid to the student's account, the 2nd disbursement may be reduced. Contact the Student Financial Aid Office for procedures. You must contact the Bursar's Office to discuss any reduction of PLUS loan funds that have already paid to the student's account. 19. My endorser was approved a while ago, where is my PLUS Loan money? If your endorser completed a paper endorser addendum please notify the Student Financial Aid Office. Once the office is made aware of the endorser approval, we will review your eligibility for the PLUS Loan. 20. How will I know if I am going to receive a refund from my PLUS loan? Information about refunds can be obtained from the Bursars Office at http://www.kent.edu/bursar/refunds/ or 330-672-2626. 21. How can I find out more information about PLUS Loans in general? General information about the PLUS Loan may be found at www.studentloans.gov. 22. Where can I find information about my PLUS Loan?

FlashLine.kent.edu can be used to review the current status of your PLUS loan at Kent State University. FlashLine can be used to review financial aid award information, active messages, award messages, Account Summary, financial aid eligibility status, and PLUS Loan status, if applicable. In order for a parent borrower to view information on FlashLine, the student would need to provide the parent borrower with access to their financial aid information through KSUview. Information about KSUview can be found at: http://www.kent.edu/academics/resources/ksuview/index.cfm Log onto studentloans.gov By logging into the website, (using your PIN), you will have access to your disclosure statements, a copy of the promissory note and other pertinent documents. NSLDS and Loan Servicer Once the PLUS Loan has had its first disbursement, you will be able to access information via your loan servicers website or by using the National Student Loan Database System (NSLDS). Your loan servicer and contact information can be found by reviewing NSLDS. You can access NSLDS for free at www.nslds.ed.gov. You will need a Federal Student Aid PIN to access this site. If you do not know your PIN you can access it at www.pin.ed.gov.

23. I was approved for the PLUS Loan, but I no longer want to take out the loan, what should I do? If you no longer wish to borrow the PLUS Loan contact the Student Financial Aid Office immediately. If the loan funds have already disbursed to the students account, you will need to contact the Bursars Office, 330-672-2626. PLUS DENIALS 24. My credit was denied the PLUS Loan what are my options? If you are denied you will be presented with the following options after receiving the negative credit decision: You can pursue an endorser/co-signer You can appeal the decision with the Department of Education by providing them with additional information. You can decide not to pursue the loan further. (See below) Dependent undergraduate students will be eligible for additional unsubsidized funds if their parents are denied and are no longer pursuing the loan. Graduate students are not eligible for additional loan funds. Undergraduate students can apply for the additional loan funds using the Direct Loan Request Form on the Student Financial Aid website. Please note: electing to pursue an endorser or appeal the credit decision will halt the processing of additional unsubsidized loan funds until the parent notifies Student Financial aid that they are no longer going to pursue the loan. 25. What if I change my mind and no longer want to appeal the credit or pursue an endorser/co-signer? The borrower of the loan must notify the Student Financial Aid Office. 26. My parent was denied the Parent PLUS for me or my sibling at another school this year. Does she have to apply again for me to be eligible for the additional unsubsidized loan funds? Your parent does not have to apply for the PLUS again. You may submit a Parent PLUS appeal form for a review of your eligibility. 27. What is the turnaround time for a Parent PLUS appeal form? It usually takes 3 5 business days for the appeal to fully process. Your student will need to watch their FlashLine account for any messages or requirements that need to be fulfilled prior to receiving the disbursement.

COUNSELOR INFORMATION 28. When can I award the additional unsubsidized loan? The student has requested the additional loan funds, which may be done via email (kent.edu account), phone, and in-person or via the Loan Request form and: A. The parent has indicated on their loan application that they will no longer pursue, or are undecided about the PLUS, and the following is visible in banner: The Parent PLUS (LFUPA1) is canceled for the amount of $100 on RPAAWRD. RRAAREQ has a status of N for PLPAE B. The parent has notified the office that they no longer plan to appeal or pursue an endorser after being denied, and the following is visible in banner: The Parent PLUS (LFUPA1) is canceled for any amount on RPAAWRD.

There is a RHACOMM message and/or ROAMESG stating that the parent will no longer pursue the PLUS Loan. RRAAREQ has a status of N for PLPAE

29. Can I award additional funds if a student states that their parent will no longer seek an endorser? No. Only the parent can request changes to the status of the Parent PLUS Loan. 30. When can I cancel the PLUS Loan? You should not cancel the PLUS Loan. If the loan funds have not disbursed, complete the PLUS Loan adjustment form and submit it to the loan area to update RPAAWRD and RPALORG. If the PLUS Loan funds have disbursed, the parent must be referred to the Bursars Office student account staff. 31. When is it ok to give out an estimator form for the PLUS? Contact the loan area if possible. The PLUS Loan credit must be approved in RPAUCOD, RPALORG or in COD. 32. A students cost of attendance has increased, can their PLUS be increased? Yes. Check with the loan area to find out if the PLUS can be increased without a new application. 33. When should I suggest the Parent PLUS Appeal Form? When a parent states that they cannot afford to take out the loan and they have an extenuating circumstance to support this. When the parent has been denied in previous years and does not wish to apply for the PLUS again. When the parent has been denied for the current year for another student, or school. Review the FAFSA results for Adjusted Gross Income of parent, the number in family, and the number in college. In most cases, additional documentation will need to be submitted with the appeal.

Created 2/28/2013 Andrea Hemphill