From UConn Student Financial Aid Services

NOTE FOR PREVIOUS BORROWERS AT UCONN: Beginning with 2009/2010, the University participates exclusively in the William D. Ford Direct Loan Program for federal loans. Click here for more information about the how the 2009/2010 federal loan process is different from the 2008/2009 federal loan process.

• Federal non-need based program
• Fixed 7.9% interest rate
• Credit check conducted by the U.S. Department of Education to establish eligibility
• Parent borrowers: repayment begins 60 days after final disbursement (deferment is available upon request from lender - parent must contact lender for this after first disbursement); FAFSA is not required
• Graduate Student borrowers: may defer payment while in school; FAFSAis required
• UConn requires parent borrowers to complete the Federal Direct Parent PLUS Loan Information Form
• UConn requires graduate student borrowers to complete the Federal Direct Graduate PLUS Loan Information Form
• Complete the PLUS MPN requirement upon credit approval. Graduate PLUS borrowers must also complete entrance counseling and exit counseling.

Contents 1 PLUS Loan FAQs: 1.1 How do my parents apply for a loan? 1.2 I borrowed a PLUS Loan at UConn last year. What do I have to do this year to get another PLUS Loan? 1.3 What if my parent is not eligible for Federal PLUS Loan? 1.4 Graduate Student PLUS Loans: 1.4.1 Are there any fees? 1.5 PLUS Loan Forms & Documents:

PLUS Loan FAQs:

How do my parents apply for a loan?

Federal Direct PLUS Loans enable parents with no adverse credit history to borrow for each dependent child who is enrolled at least half-time. The parent can borrow up to the cost of education minus any financial aid the student receives (listed as PLUS loan eligibility on the Student Administration System). The student can accept the PLUS eligibility, but the parent must complete the Federal Direct Parent PLUS Loan Information Form in order for the loan to actually be processed and sent to the U.S. Department of Education for a credit check. Repayment of the Federal PLUS Loan principal and interest begins 60 days after the final disbursement for the loan period. Deferments are available for parents who wish to postpone repayment until after the dependent student has graduated or withdrawn.

Parents wishing to borrow a Federal Direct Parent PLUS Loan should complete the following steps:

• Step One: The Federal Direct PLUS Loan process is activated when the aid office is notified of parent interest by the student accepting the PLUS Eligibility via the Student Administration System or by the parent completing the Federal Direct Parent PLUS Loan Information Form. All parents wishing to borrow a PLUS loan must complete the Federal Direct Parent PLUS Loan Information Form.
• Step Two: Upon receipt of the PLUS Loan Information Form, your PLUS Loan eligibility will be certified and electronically transmitted to the U.S. Department of Education for a credit check.
• Step Three: If we receive notice that you have been credit approved, our office will contact you via email with instructions to complete your Master Promissory Note (MPN).

 You should not complete the Master Promissory Note until you have completed Step One and Step Two (and have received notice of your credit approval).

I borrowed a PLUS Loan at UConn last year. What do I have to do this year to get another PLUS Loan?

Parent and Graduate Borrowers are required to complete a new PLUS Loan Information Form each year. Graduate students are also required to complete the FAFSA each year. Due to a change in loan processing from last year, continuing borrowers at UConn will need to complete a new Master Promissory Note for the Direct Loan Program, if you are credit approved. You will not be able to continue borrowing through your previous lender(if applicable). Once you have completed your Direct Loan MPN, you will not be required to complete a new MPN in future years.

What if my parent is not eligible for Federal PLUS Loan?

If a parent is denied for a Federal Direct PLUS Loan, the student may become eligible to borrow an additional Unsubsidized Federal Direct Stafford Loan amount. Students will be notified of any increase in Stafford eligibility via the Student Administration System (SA System).

Graduate Student PLUS Loans:

The Deficit Reduction Act of 2005 has modified the federal PLUS program (formerly offering only loans for parents) to allow graduate students to borrow PLUS loans as well.

Qualified applicants must complete the UConn Graduate Professional Federal Direct PLUS Loan Information Form. Once the form is received and processed, an electronic record will be sent to the U.S. Department of Education. If our office receives notice from the Department of Education that you have been credit approved, we will contact you via email with instructions on completing the Master Promissory Note.

Are there any fees?

In addition to interest, there are fees associated with borrowing a Federal Direct PLUS Loan. The U.S. Department of Education charges a 4% gross fee, then gives borrowers an up-front rebate of 1.5%. This means that you will be charged a net fee of 2.5% of the total amount borrowed each year. This fee is deducted from the loan by the Department of Education before the proceeds are credited to your student account.
IMPORTANT NOTE ABOUT THE UP-FRONT REBATE:The up-front rebate reduces the fee you pay at origination. If you don't make your first 12 monthly payments on time, the U.S. Department of Education will add the 1.5% rebate back to your loan balance.

PLUS Loan Forms & Documents:

The required Federal Direct Parent PLUS Loan Information Form and Federal Direct Graduate Professional PLUS Loan Information Form are available in our Form Portal.

Parents who are credit approved by the US Department of Education for a Federal Direct PLUS Loan must complete the Master Promissory Note. Parents should not complete the Master Promissory Note until they receive notice of credit approval.

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