FEDERAL DIRECT Parent PLUS Loan

Federal Direct Parent PLUS Loan

http://www.direct.ed.gov/parent.html

Federal Direct Parent PLUS Loans are credit based loans that are offered to parent(s) of dependent undergraduate students. Please be advised that students would need to be enrolled at least half time and must be in good academic standing to receive a disbursement.

  1. Complete a FAFSA with the U.S. Department of Education
  2. The Department of Education will process the information provided on FAFSA and send the student a Student Aid Report (SAR). The SAR will give the student information on the processing of their aid. Students are strongly encouraged to read the report thoroughly. The school would receive the Estimated Family Contribution (EFC) to be able to process the student’s eligibility for federal student aid.
  3. The Financial Aid office would view the student’s eligibility. Once the student is determined to be eligible to receive aid, an award would be posted on HU NET for the student. Please view HU Net for your eligibility status or to see the outstanding requirements for your financial aid. You may also contact counselor for eligibility requirements and your status. The student would need to agree to all disclosures and then accept the aid offered to the student in order for the aid to be processed.
  4. In order to begin the process of the PLUS loan, there are two requirements that must be completed.
    1. The loan must be accepted on HU Net, which is accessed by using the student ID number and password.
    2. A parent of the dependent undergraduate student would need to Complete a Parent PLUS Loan Application and Master Promissory Note (MPN). By completing this process, the parent authorizes a credit check by the U.S. Department of Education.
  5. Once both requirements have been satisfied, the loan department at Hampton University would originate the loan with the US Department of Education. The parent has the opportunity to indicate how much of the PLUS loan they would like to have processed on the PLUS loan application. If there is not an amount indicated on the application, the loan department will process the loan for the maximum amount offered on the student’s award.
  6. The U. S. Department of Education would notify the parent and Hampton University of the credit decision. Approved PLUS loans will be held until the first disbursement. There are three options for students and parents with denied PLUS loans. They are as follows:
    1. The student would be eligible to receive an additional Stafford Unsubsidized Loan. The amount of the additional loan is determined by the classification that the Office of the Registrar at Hampton University has determined for the student. Once the loan is denied, the student would need to submit a Request for Additional Unsubsidized Stafford Loan due to Parent PLUS Denial to the loan department in the Financial Aid Office in order to receive the additional loan. Please be advised that funds will be retracted from student’s account in the event the PLUS loan is later approved.
    2. The parent can appeal the credit decision with Direct Loans within 30 days of the credit decision. By the parent requesting the appeal, Direct Loans will take a second look at the credit history. The parent could be required to submit documentation to support accounts that have been made current. In the event the PLUS loan is approved through an appeal, the student is not eligible for the additional Unsubsidized Stafford Loan.
    3. Immediately upon denying a PLUS loan, Direct Loans mails an endorser packet to the parent. The endorser packet could be completed and returned to the U.S. Department of Education for review. In the event, the parent is able to get the loan approved later; the student is not eligible for the additional Unsubsidized Stafford Loan.
    4. The U.S. Department of Education is sending communication to some parents that were denied the PLUS loan. If you have received this communication you are encouraged to immediately contact Student Loan Support Center at 1-800-557-7394 to request the reconsideration on their PLUS loan decision.
  7. Hampton University’s disbursement dates are generally scheduled every Tuesday and Thursday. Students are strongly encouraged to view HU Net after 5pm on the scheduled disbursement date to view their student account balance. If there is a refund as a result of the PLUS loan disbursement, the borrower needs to contact the Business Office in writing to advise how they would like the refund processed. The Business Office can be reached at 757-727-5661 or toll-free at 1-800-624-3327.
  8. In the event that the borrower would like to make changes to the PLUS loan, we do have forms available to increase, decrease, cancel, and reinstate. Please use these forms when requesting changes loans.