Federal Direct Parent PLUS Loan
To request a deferment on a Federal Direct Parent PLUS Loan, you must call Direct Loan Servicing at 1-800-848-0979. Be sure to find out who your loan servicer is. If your loan servicing is PHEAA/EdLoan Servicing, you can use this PLUS Loan Deferment form. Repayment period on the Federal Direct PLUS Loan is ten years. Effective July 1, 2013, the Federal Direct PLUS Loan interest rate will be "variable-fixed," meaning parents/graduate students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. The PLUS interest rate is set at 7.21% for loans with first disbursements between July 1, 2014 through June 30, 2015. The Federal Direct PLUS Loan has an origination fee of approximately 4.292% for loans with first disbursements October 1, 2014 and after (for loans with first disbursements prior to October 1, 2014, the fee is 4.288%). While the credit approval process on a Federal Direct PLUS Loan is more lenient in that there is no debt-to-income ratio calculation, please note that individuals that have one of the following items on their credit report will likely be declined: 1) 90 or more days delinquent on any debt 2) Bankruptcy chapter 7, 11 or chapter 12 3) Account in foreclosure 4) Account in Repossession 5) Tax lien (county, state or federal) 6) Lease or contract terminated by default 7) Wage garnishment 8) Default on a student loan 9) Charged off account with an account balance greater than zero dollars or 10) Collection account with an account balance greater than zero dollars. Due to changes in the Federal PLUS Loan credit criteria, individuals previously approved on a PLUS Loan prior to October 22, 2011 may now encounter a denial if they have item 9) or 10) as noted above on their credit report. If a parent of a dependent undergraduate is denied on the Federal Direct PLUS Loan, the student is automatically permitted to borrow an additional Unsubsidized Direct Stafford Loan on their own ($4,000/year as a first-year or sophomore student; $5,000/year as a junior or senior).
To apply for a Federal Direct PLUS Loan, do the following:
For the 2014-2015 academic year (summer 2014, fall 2014, spring 2015 semesters):
1. Complete a 2014-2015 Federal Direct Parent PLUS Pre-Approval Form. (This enables the University to perform a credit-check on borrower's behalf.)
2. Complete a Federal Direct PLUS MPN* (Master Promissory Note) online at www.StudentLoans.gov. Federal PIN required.
The results of the PLUS Loan credit check will be emailed to the parent directly from the Financial Aid Office once the credit check is performed. Please note that because credit checks are only valid for 90 days, the earliest we will run a PLUS credit check is 90 days before the semester begins. In the event that a parent of a dependent undergraduate student is denied for the PLUS Loan on the basis of his/her credit, the federal government automatically allows the student to apply for an additional Unsubsidized Federal Stafford Loan that would be in his/her name, of $4,000/year as a freshman or sophomore; $5,000/year as a junior or senior. A parent must apply for the Federal Direct PLUS Loan and be denied annually for student to qualify.
Parents denied on the Federal Direct PLUS Loan credit check who wish to use an endorser (co-signer) on the PLUS Loan should contact their student's financial aid counselor directly at 215-572-2980. The endorser will need to obtain a federal PIN at www.pin.ed.gov and then complete the Endorser Addendum online via www.Studentloans.gov. (they must sign in using their own SSNO and federal PIN). Endorser will need a Loan ID, which the Financial Aid Office will provide. Contact your financial aid counselor directly if you wish to apply with an endorser. If the endorser is approved, the parent borrower must cmplete a new PLUS MPN at www.studentloans.gov, even if they previously completed a PLUS MPN in a prior year. Every endorsed loan requires a new PLUS MPN.
Parents wishing to appeal the credit denial on a Federal Direct PLUS Loan should contact Direct Loan Applicant Services at 1-800-557-7394 for information on the process.
*Only required for first-time Federal Direct PLUS borrowers. MPN is good for up to ten years.