What if my credit is not approved?
You can either obtain an endorser, or you may choose to document extenuating circumstances (appeal) relating to the reason you were declined.
Obtaining an Endorser
An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you do not repay it. If you are a parent borrower, the endorser may not be the student on whose behalf you are requesting the Direct PLUS Loan.
If you choose to obtain an endorser, the endorser may complete the endorser addendum on our secure StudentLoans.gov Web site. To complete the endorser addendum online, the endorser will need the Loan Reference Number (if you completed a Direct PLUS Loan Request) or Loan/Award Identification Number and a Federal Student Aid (FSA) PIN. If you completed a Direct PLUS Loan Request, the Loan Reference Number may be found in the confirmation email you received or may be found by logging in to the StudentLoans.gov Web site and selecting "Direct PLUS Loan Requests" located on the left navigation bar. If you did not complete a Direct PLUS Loan Request, the Loan/Award Identification Number may be obtained from the school. If the endorser does not have a FSA PIN, they may obtain one by visiting the FSA PIN Web site at www.pin.ed.gov.
Documenting Extenuating Circumstances
If you believe there are extenuating circumstances related to the adverse credit information listed above that should be considered in evaluating your eligibility for a Direct PLUS Loan, you may send documentation to Applicant Services explaining your situation. You must explain in detail the extenuating circumstances that you believe mitigate the adverse credit information in your credit record. If appropriate, include documentation to support your explanation.
Contact the school's financial aid office as soon as possible to let them know whether you plan to pursue a Direct PLUS Loan by obtaining an endorser or submitting documentation of extenuating circumstances. If you decide not to pursue a Direct PLUS Loan, the school's financial aid administrator may be able to provide information concerning other options to assist you with paying for your or the student's education.
You may choose not to appeal the denial and your student may borrow an additional Federal Direct Unsubsidized Loan. Maximum additional funds that can be borrowed by your dependent student: First-year and sophomore students, $4,000 per academic year; junior and senior students, $5,000 per academic year.
How long is a credit approval valid?
How much can I borrow?
A parent may apply for a PLUS up to the cost of attendance minus all other financial assistance. If the PLUS is for one term only, the amount a parent may borrow is based on the cost of attendance minus the financial aid for that term. If the amount requested exceeds the eligibility, DWU will reduce the loan amount to abide by federal regulation. Note: There is a 4% origination fee for Federal Parent PLUS loans, so you will want to take this into consideration when applying.
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. A Master Promissory Note is a multi-year promissory note that only has to be completed once while your student is attending DWU.
How do I sign an MPN?
Instructions for completion of the MPN will be forwarded to first time Direct Loan borrowers after you have completed the PLUS Loan Credit Check Form and you have been credit-approved.
When will the PLUS disburse?
In accordance with federal loan regulations, the loan may be applied to your student’s account approximately 7-10 days prior to the beginning of the term if all requirements are met. If full-year enrollment is anticipated, one-half of the loan will be disbursed at the beginning of each term. If enrolled one term only, the total amount of your loan will disburse at the beginning of the term.
When will repayment begin?
PLUS loan borrowers whose funds were first disbursed on or after July 1, 2008, have the option of delaying their repayment on the PLUS loan either 60 days after the loan is fully disbursed or six months after the dependent student is not enrolled at least half-time. During this time, interest may be paid by the parent or capitalized. The repayment period for the PLUS loan may range from 10 to 25 years.
A .25% interest rate reduction is offered to borrowers who have their monthly payment auto-debited from their account.
What if my loan proceeds exceed what is actually due to DWU?
If PLUS funds result in a credit on the student’s account, a refund will be sent to whom the parent selected on the PLUS excess cash form.
What if additional financial assistance is received and I want to reduce or cancel my PLUS?
If your student has received additional financial aid and you now wish to reduce or cancel the amount you borrowed with the Federal Direct PLUS, it is important that you notify the Financial Aid Office at DWU in writing as soon as possible. You may cancel all, or a portion of your loan before or after funds have been credited to your student’s account, by notifying us in writing. Canceling your Federal Direct PLUS loan will not make your student eligible for additional unsubsidized loan amounts. If the additional financial aid received by your student results in aid that is in excess of your student’s cost of attendance, our office will automatically reduce the appropriate loan fund. These loan funds will be returned to the U.S. Department of Education. The amount returned will appear as a charge on the student’s bill.
Who should I contact to reduce or cancel my PLUS loan?
Contact DWU’s Office of Financial Assistance to cancel or make revisions to your loan.
(800) 333-8506 or email: email@example.com.
What if I want to apply for additional PLUS loan funds?
You may apply for additional PLUS loan funds by completing a DWU Parent PLUS Loan Request Additional Funds Form. Please contact the DWU Financial Aid Office at (800) 333-8506 or email: firstname.lastname@example.org. You should list the additional amount and mark a check on the application that you are requesting additional funds. Please note that your credit history may be reviewed again to determine your eligibility.
Can I consolidate my loans when my student graduates if I’ve had previous PLUS loans?
Yes, you may consolidate your PLUS loans into one loan. Consolidation allows you to combine all of your loans (whether Direct or with a lender) thereby making one new loan requiring only one monthly payment. Consolidation loans are offered through the Direct Loan Consolidation Center. More information on loan consolidation can be obtained by contacting the Direct Loan Consolidation Center at (800) 557-7392 or www.loanconsolidation.ed.gov.