Federal Direct Parent PLUS Loan Application

2018-2019 Federal Direct Parent PLUS Loan Application

Louisiana State University • Pleasant Hall • Baton Rouge, LA • 70803 • O 225-578-3103 • F 225-578-6300

If you wish to apply for the Federal Direct Parent PLUS Loan for the 2018-2019 academic year, you must complete all sections of this loan application. The information that you supply on this application will be electronically transmitted to the U.S. Department of Education, its services and/or agents. Your credit history will be reviewed to determine your eligibility. This form must be completed each academic year to request a Parent PLUS loan. Please note the Free Application for Federal Student Aid (FAFSA) must be submitted each academic year before a Parent PLUS loan application can be processed. Please use blue or black ink only when completing this document.

Student's Name: LSU ID: 89 - -

List the name of one parent borrower only. In order to apply for a Parent PLUS loan, the borrower must be a natural parent, adoptive parent, or stepparent (if stepparent’s income and assets are considered on the FAFSA) of a dependent student.

In the event your Parent PLUS loan is denied due to the result of your credit review, please check one option below:

Allow the student the option to receive the additional Federal Direct Unsubsidized Stafford Loan up to their grade level maximum.

I will obtain an endorser (credit worthy cosigner) or provide documentation to the Direct Loan Servicing Center that my adverse credit is resolved. (The Direct Loan Servicing Center will send you a packet of information for this option.)

Cancel 2018-2019 Parent PLUS loan request

If the Parent PLUS loan results in an overage to my student’s Bursar account, I request that a refund be issued and sent directly to:

the borrower

the above named student

By signing this statement, I certify that I am currently not default on a prior loan and that all information on this form is complete and correct. I consent to the U.S. Department of Education and its agents to review my credit report and use the information from that report in determining whether to award a Federal Direct Parent PLUS loan to me. I understand that I will be notified in writing of the results of the credit check and that I must have an electronic Master Promissory Note (MPN) on file at www.studentloans.gov before funds can be disbursed. I further understand that if I am granted a credit decision override based upon an adverse credit history, I must also complete the required PLUS counseling prior to funds being disbursed. I authorize LSU to apply any remaining Title IV funds that I may receive to other educational charges outside of tuition, fees, and on-campus room and board. I also attest that I have read and agree to all the information on the back of this form, including the Privacy Act Disclosure Notice. *If you purposely give false or misleading information on this worksheet, you may be fined, be sentenced to jail, or both.

***No electronic signatures can be accepted.

Parent Information

Relationship to student: Father Mother Stepfather Stepmother

Name: SSN:

Address:

Date of Birth: Home Phone: Work Phone:

Parent Borrower Citizenship: U.S. Citizen Eligible Noncitizen

Are you currently in default on a federal student loan? Yes No

Have you had a federal student loan discharged due to disability or bankruptcy? Yes No

E-mail address:

Indicate ONE Loan Period:

Summer 2018, Fall 2018, & Spring 2019 Summer 2018

Summer 2018 & Fall 2018 Fall 2018 & Spring 2019

Fall 2018 Spring 2019

Loan Amount Requested: $ (DOLLAR amount required)

***Please indicate the dollar amount for the entire year. If you check Fall 2018 & Spring 2019 and want $5,000 per semester, you should indicate $10,000 for the loan amount requested.

A parent may borrow up to the total cost of attendance minus all the financial aid and resources received by the student.

IMPORTANT INFORMATION ABOUT YOUR PLUS LOAN APPLICATION

The amount that a parent may borrow is based on the cost of attendance minus the financial aid and resources for the loan period.

After your PLUS loan is approved and the Office of Undergraduate Admissions and Student Aid has received acknowledgement of a valid promissory note, PLUS loan funds will automatically be applied to the student’s LSU account in accordance with LSU’s disbursement schedule. If the PLUS loan funds result in a credit on the student’s LSU account, a refund check will be sent to the parent, unless the parent requests on the Federal Direct Parent PLUS Loan Application that the refund be issued to the student.

If you have not completed a Master Promissory Note (MPN) for this student: By signing and submitting this PLUS loan application, you consent to borrow funds under the PLUS loan program and understand that if approved and after a Master Promissory Note is completed, your funds will be applied to your student’s LSU account in accordance with LSU’s disbursement schedule.

If you already have a signed Master Promissory Note (MPN) on file with our office for this student: By signing and submitting this PLUS loan application, you consent to borrow funds under the PLUS loan program and understand that your funds, if approved, will be accepted automatically and applied to your student’s LSU account in accordance with LSU’s disbursement schedule.

You may cancel all or a portion of your loan after funds have been credited to your student’s LSU account by notifying us in writing within 30 days.

If the parent borrower is denied a PLUS loan, and the student has opted to receive the additional Federal Direct Unsubsidized Stafford Loan, the additional loan is subject to the following limits:

• students with 59 and under earned credit hours – up to $4,000 per academic year
• students with 60 and over earned credit hours – up to $5,000 per academic year

Consent to Obtain Credit Report

Privacy Act Disclosure Notice

The Privacy Act of 1974 (5 U.S.C. 552a) requires that the following notice be provided to you. The authority for collecting the information requested on this form is §451 et seq. of the Higher Education Act of 1965, as amended. Your disclosure of this information is voluntary. However, if you do not provide this information, you cannot be considered for a Federal Direct PLUS loan. The information on this form will be used to determine your eligibility for a Federal Direct PLUS loan. The information in your file may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called “Title IV Program Files” and “National Student Loan Data System.” This information may be disclosed for administration, enforcement, litigation, and other authorized purposes.

Because we request your social security number (SSN), we must inform you that we collect your SSN on a voluntary basis, but section 484(a)(4) of the HEA provides that, in order to receive any grant, loan, or work assistance under Title IV of the HEA, a student must provide his or her SSN. Your SSN is used to verify your identity, and as an account number throughout the life of your loan(s) so that data may be recorded accurately.

Frequently Asked Questions

Please keep this information sheet with your other important financial aid papers

How will I know if I am eligible?

After the attached form is processed, you will be notified by the Direct Loan Servicing Center of your loan eligibility. Generally, you are eligible if you filed the FAFSA for this academic year, you do not have an adverse credit history, you are not in default on a federal student loan, and you meet the other eligibility requirements outlined on your loan application.

When can I apply for the PLUS loan?

Once the FAFSA is submitted, a PLUS loan application can be made at any time throughout the academic year; however, please allow 1-2 weeks for processing.

What is a Master Promissory Note (MPN)?

A promissory note is a binding legal document that lists the conditions of your loan and the terms of repayment. Instead of completing a promissory note every year, a Master Promissory Note (MPN) is a multi-year promissory note that only has to be completed once while your student is attending LSU.

How do I sign an MPN?

If you do not have a valid Master Promissory Note (MPN) on file, you may electronically complete an MPN at www.studentloans.gov. You will need a federal Personal Identification Number (PIN) to complete the MPN.

What is the interest rate for a Parent PLUS loan?

The PLUS loan has a fixed interest rate of 7.595% for loans first disbursed on or after July 1, 2018 and prior to June 30, 2019.

Other than interest, is there a charge for this loan?

There is a loan fee of 4.248% deducted from each disbursement for loans first disbursed on or after October 1, 2018 and before October 1, 2019.

When will the Parent PLUS loan disburse?

In accordance with federal loan regulations and LSU’s disbursement schedule, the loan will be applied to your LSU account once all the requirements are met.

What if additional financial aid is received and I want to reduce or cancel my PLUS loan?

If your student has received additional financial aid and you now wish to reduce or cancel the amount you borrowed, notify the Office of Enrollment Management at Louisiana State University in writing within 30 days of the funds crediting to the student’s LSU account.

What if my PLUS loan is denied due to the result of my credit review?

If your PLUS loan is denied due to the result of your credit review, you will receive notification from the Direct Loan Servicing Center. You may choose from the following options:

• You may try to have a credit status override completed by the Direct Loan Servicing Center. Please contact the Direct Loan Servicing Center at 1-800-557-7394.
• You may provide documentation to the Direct Loan Servicing Center if you have extenuating circumstances. Your request for a PLUS loan will be reviewed again by the servicer.
• You may have a third party endorser co-sign the PLUS loan application with you. The Direct Loan Servicing Center will send you a packet of information for this option.
• If you qualify by obtaining an endorser or by documenting that there are extenuating circumstances related to your adverse credit history, you’ll also be required to complete PLUS counseling before you can receive a Direct PLUS Loan.
• You may choose to not pursue the denied PLUS loan and your student may borrow additional funds through the Federal Direct Unsubsidized Stafford Loan Program.

Below is the maximum additional funds that can be borrowed by your dependent student:

- students with 59 and under earned credit hours – up to $4,000 per academic year

- students with 60 and over earned credit hours – up to $5,000 per academic year