Continuing Traditional Undergraduates

Types of Aid:
Grants and Scholarships | Student Employment | Financing Options

Federal PLUS Loan: How to Apply

Parents who choose to take out a Parent Loan for Undergraduate Students (PLUS) should be aware that processing time may take as long as four weeks. Apply for the 2008-2009 academic year as early as May 1st and no later than August 15th to secure funding prior to the start of Fall term. Without exception, a Free Application for Federal Student Aid (FAFSA) must be on file with the Office of Financial Aid before the school will approve eligibility for a PLUS loan.

Select a Lender

Federal PLUS loans are funded by private lenders, including banks and credit unions. The federal government sets the interest rate and limits on fees for the loans. However, many lenders offer benefits to borrowers beyond the minimum requirements. We encourage you to carefully review your options before choosing a lender. Parents may select any lender that participates in the Family Federal Education Loan (FFEL) Program. To aid your search, the Office of Financial Aid provides a list of recommended FFELP lenders.

Complete a Master Promissory Note (MPN)

After selecting a lender, visit the lender's website to complete a PLUS Master Promissory Note (MPN.) This promissory note in most cases is valid for PLUS loans borrowed during the student's entire course of study at DU. An MPN is valid for only one parent; if another parent chooses to take out a PLUS loan, he or she must sign a separate MPN. If you have taken out a PLUS loan for this student in a previous year, you only need to log in to the lender's website and request a loan for the new academic year and indicate an amount you would like to borrow.

What Happens Next: Credit Check, Loan Processing, Disbursement, Refunds

After completing an MPN, your lender will do a credit check. If the credit check is approved, the lender will send a request to the school to certify your eligibility for the loan. If a FAFSA is on file, our office will certify the loan and send the information back to your lender. The lender will send you a Notice of Loan Guarantee and Disclosure, indicating the loan has been approved. Funds will disburse to the student's DU account no earlier than ten days prior to the start of each term or within 7 to 10 business days depending upon when you apply for the loan. If the student's total financial aid for the term exceeds the charges on the student's account, a refund may be issued to you within a few business days. Please visit the Bursar’s Office FAQ page for more information about refunds. If you would like excess PLUS funds issued to the student instead of to you, please send us an email with the subject line of "PLUS refund" and indicate you would like any refund of the PLUS to be issued to the student so we may adjust our refund system per your request.

If the PLUS Loan is Denied

If your PLUS Loan is denied by a lender or guarantor, the following three options are available to you:

• The parent who has been denied may contact the lender or guarantor of the loan to attempt to resolve the reason for denial (oftentimes a credit issue), or

• If the parent's credit cannot be resolved, he or she may add a credit-worthy co-signer, or endorser, on to the loan. A document called an Endorser Addendum may be obtained from the lender or guarantor, or

• The student may request an additional unsubsidized Stafford loan in place of the PLUS. A request for the loan must be made by the student in writing and submitted to the Office of Financial Aid by mail, fax, or email. Freshmen and sophomores may borrow up to $4000 per year in an additional unsubsidized Stafford loan, and juniors and seniors may borrow an additional $5000. As a reminder, you must apply for the PLUS loan annually; therefore, a student's eligibility for an additional unsubsidized Stafford loan does not carry forward to future years.

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