PLUS Application & Master Promissory Note (MPN):
New borrowers must complete the PLUS Application and MPN at student.loans.gov. Your loan will not pay without completing these requirements.
- Direct Loan Servicing will run a credit check and notify you of the results.
- Adverse credit history* will be considered, such as, bankruptcy, foreclosure, tax lien, and defaulting on loan payments.
- If your credit check is not approved, you could choose from one of the four options listed below. Please contact Direct Loan Applicant Services at 800-557-7394 for the credit check results and to discuss your options.
(*The October 23, 2014 regulations provide that a PLUS loan applicant (either a parent or a graduate or professional student) has an adverse credit history if, in addition to other conditions (e.g., bankruptcy, foreclosure, tax lien, or a default determination), the applicant has one or more debts that are 90 or more days delinquent or that are in collection or have been charged off during the two years preceding the date of the applicant’s credit report, but only if the total combined outstanding balance of those debts is greater than $2,085. Thus, absent any other adverse credit history finding a PLUS Loan applicant whose credit check shows that the total of any debts that are 90 or more days delinquent or that have been placed in collection or charged off is $2,085 or less will not be considered to have adverse credit and therefore, will be eligible for a PLUS Loan.)
Loan Approved with Adverse Credit History
Beginning on March 29, 2015, a new regulatory provision requires special loan counseling for any PLUS Loan applicant who has an adverse credit history, but who qualifies for a PLUS Loan through the process for reconsideration due to extenuating circumstances or by obtaining an endorser for the loan. While the counseling is mandatory only for these borrowers, the U.S. Department of Education will offer voluntary counseling for all PLUS Loan borrowers. [see U.S. Dept. of Ed. regulation CFR 685.304(a)(2)]
PLUS Loan funds will first be applied to your student's University account to pay tuition, fees and other institutional charges. Any remaining funds will be refunded to you or your student by the Bursar's Office based on the choice that you selected on the PLUS Application form.
- On the PLUS Application parent borrowers can "opt" to defer repayment while your student is at least half-time enrolled. Otherwise, your loan enters repayment once your loan is fully disbursed (paid out). Interest will continue to accrue if you are granted a deferment/forbearance on the loan.
- You may prepay your loan in full at any time or pay more than the monthly repayment amount due without penalty.
- About 4-6 weeks after the first disbursement of your loan, your Federal Loan Servicer will mail a disclosure statement that will include their contact information and web address or go to National Student Loan Data System (NSLDS) to find your Servicer's contact information.
- Register online at your Federal Loan Servicer's web site and check for detailed repayment information and deferment, forbearance, or consolidation options.
Additional information about the Direct PLUS Loan is available on the U.S. Department of Education's Repaying Your Loans page.