PLUS Loan (Parent for Student)

A PLUS Loan for parents is available to parents of dependent students. The student must first complete a FAFSA (this rule is in effect for the 2008-2009 aid year). Visit the Federal Student Aid website for complete information regarding this loan program. PLUS loans are credit worthy. Should a parent not pass the credit check the student will be offered an additional $4,000 in an unsubsidized loan.

Lawrence Tech parents borrower directly from the Federal Direct PLUS loan program.

PLUS loan payment deferments now available! Parents borrowing a PLUS loan beginning July 1, 2008 may defer payments on interest only or on both interest and principal while the student for whom the loan was taken is enrolled at least half time. Parents must request the deferment of payment from the Federal Direct PLUS Loan Program click here for form whcih should  be completed and submitted to Lawrence Tech One Stop Center.

Cancellation of loans - PLUS Loan borrowers have the right to cancel their loan disbursements within 14 days of the disbursement notice. Should you decide to cancel the disbursement of your PLUS Loan, you should contact the One Stop Center at Enrollmentservices@ltu.edu in writing within the specified time period. By canceling the disbursement, you will be responsible for any unpaid tuition and fees, as well as repayment of loan funds already paid to you.

Begin The PLUS Loan Process

Now that you have made your decison to borrow from the PLUS loan program there are several steps to follow. First complete the parent information form and submit to Enrollment Services.  The Office of Financial Aid will originate your loan request and Federal Direct Loans will perform a credit check. You will also be required to sign a Master Promissory Note (MPN) with the Federal Direct Loan Program. Without a signed MPN your son/daughter will not receive the loan funds.

 

Who Can Borrow

A parent or stepparent of a dependent student may borrow under the PLUS program. PLUS applicants are subject to a credit check approvals.

The Loan Maximum is the student's cost of attendance minus other financial aid received for the loan period. You determine the amount to borrow based on the portion of your educational costs to be financed. Visit http://www.ltu.edu/financial_aid/estimate.asp for an example of how to estimate your amount.

PLUS Master Promissory Note

A parent borrowing the first time must complete an electronic master promissory note (MPN). Once we receive acknowledgement of the signed MPN, the funds pay to the student's account (no earlier than 10 days prior to the start of the semester).

A Master Promissory Note (MPN) is used to make one or more loans to the same borrower over one or more academic years. The Direct Loan Disclosure Statements and disbursement notices indicate the amounts of the individual loans you are taking under the MPN. This allows you to sign one MPN for all PLUS loans for the student on whose behalf you are borrowing. There is a ten year limit on the life of the note. You are agreeing to repay the U.S. Department of Education all loans made to you under the terms of the MPN and you understand that multiple loans may be made to you under this same MPN.

Because the MPN covers current and future loans, individual loan information cannot be displayed. You will receive Disclosure Statements for each new loan. This statement provides comprehensive information about the loan type, the amount, loan period and expected disbursements. It is important that you keep all of the statements you receive. When loan proceeds are paid, you will receive a disbursement notice from the Federal Direct Loan Program.

Signing the Note

• The parent borrower can electronically sign the Master Promissory note at any time. You do not have to wait for the PLUS Application to be processed.
• The parent borrower of the loan obtains a Federal PIN (www.pin.ed.gov)
• The parent borrower accesses the Direct Loan Master Promissory Note website at Direct Loan Master Promissory Note site.
• Click on "Complete New MPN for Parent PLUS Loans" toward the bottom of the left column
• The parent borrower uses his or her Federal PIN to access the MPN process.

Tips for Accessing the MPN Website

When you access the MPN website main page, select the section entitled "What You Need" from the left side menu. Here you will find technical information about what types of internet browsers work best for this site, a reminder to close pop-up blockers so that you will be able to access all necessary web pages, and how to obtain.

Adobe Reader if you do not have it installed on your computer. There is also a link to site assistance should you have further questions about technical aspects.

Tips for Successful MPN Signing

The parent borrower information used to complete the MPN must match exactly the

information on the PLUS information form submitted to Enrollment Services. Refer to your copy of the application when completing the MPN.

Recheck the input of social security numbers and birth dates for accuracy. If the MPN information does not match the information in the loan system the promissory will not be valid.

After receiving a Confirmation Number in Step 8, there are more steps.

Minimize the Confirmation screen and proceed with the remaining screens. You are done when you see "Success! Now print your MPN."

   Access the  Federal Direct Student Loan Program site for additional information and MPN site.

• After receiving a Confirmation Number in Step 8, there are more steps. Minimize the Confirmation screen and proceed with the remaining screens. You are done when you see "Success! Now print your MPN."
• Print a copy of the note for your records.

New parent borrowers

Returning student parent borrowers - borrow directly from the Federal Direct PLUS Loan Program. Access the  Federal Direct Student Loan Program site for additional information and MPN site. Please be aware of the terms and conditions of all loans borrowed in the past. Beginning with the 2008-2009 academic year most lenders are selling their educational loans to the Federal government.  Please read carefully any correspondance you receive from your prior lender regarding the terms and conditions of repayment. If you are considering consolidation of your PLUS loans in the future, you may jeopardize your anticipated borrower benefits (such as reduced interest rates) if you are not acutely aware of the terms and conditions of these loans.

Parents may accept or decline the PLUS Loan through Banner Web. Have your son/daughter log on to Banner Web and select your decision.

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