Lipscomb University
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Parent PLUS Loan Information
2012-2013 Academic Year

**Parent PLUS loans for Summer 2013 will be listed under the 2012-2013 school year.  Process remains the same as below, but make sure to select the 2012-2013 school year when applying online at www.studentloans.gov. 

***Parent PLUS loan credit decisions for the 2013-2014 school year are not available until after May, 1, 2013 through www.studentloans.gov.  Please remember that credit decision are only valid for 90 days. 

The Federal Parent PLUS loan is available for Parents of undergraduate dependent students. It is a federal loan that must be repaid. The interest rate is determined by the Federal government and is subject to change July 1. The current interest rate is fixed at 7.9%.  Eligibility is based on credit history as determined by federal guidelines and the Department of Education. The loans disburse ½ of the total in the fall and ½ of the total in the spring.   The maximum loan amount is not to exceed the student’s federal budget less any additional assistance the student may have received.  Prior to disbursement, the Department of Education withholds 4.204% from the loan amount to cover loan origination fees.  

Repayment of a Parent PLUS loan typically begins within 60 days after the full disbursement of the loan.  However, a parent can request deferment of the PLUS loan while the student is enrolled.  Documentation and additional paperwork may be required by the Department of Education in order for the deferment to be granted.  This documentation may be required each year of enrollment.  Interest will continue to accrue during the deferment period. 

How to Apply for a Parent PLUS Loan

  1. Sign in to www.studentloans.gov using Parent social security number, date of birth and FAFSA Pin number.
  2. Select "Request a PLUS Loan"
  3. Complete the Four Step Process
    1. Personal Information
    2. Student & Loan Information
    3. Review Application
    4. Credit Check and Submit
  4. Credit Decision displayed by Department of Education (Credit decision is valid for 90 days)
    1. Approval decisions will be sent to the Financial Aid Office within 2-3 days
      1. Approvals with specific amounts will be added to student's myLipscomb account as information is received
      2. Once approved please fill out the Parent PLUS Request Form
    2. Denial, if denied, the student can receive additional Unsubsidized loans of $4,000 a year for freshman and sophomores $5,000 for junior and seniors for the year. Decisions will be sent to the Financial Aid Office with in a week.
      1. IMPORTANT:  In order for the student to be eligible for additional Unsubsidized loans with a Parent PLUS Denial, Parent must select "Will Not Pursue PLUS Loan" after the denial decision is made. Leaving it blank or selecting the endorser option does not allow for the additional Unsub loan. The Financial Aid Office must receive the "Request to Increase Loan Form" in order for the additional loan money to be placed on the student's account. The form can be found in the "forms" section of out website.
      2. Once denial decision is received, additional unsubsidized loans will be offered to student, who must accept the new loan amount through his/her myLipscomb Financial Aid Award
      3. If an endorser option is selected, then this process must be completed and submitted to the school by the Department of Education before a PLUS loan can be added to the Student's award

Additional Information Regarding Parent PLUS loans:

  • Two options are available for Loan Amounts; specific amount or maximum amount allowed by school.  By selecting the Maximum amount allowed by school, you will still be required to confirm in writing by emailing the Financial Aid Office at financialaid@lipscomb.edu the loan amount you want to borrow for the PLUS loan.  It is recommended that you select an actual amount in the approval process.
  • Parent PLUS loans will have a 4.204% origination fee charged when funds are disbursed to the school.  This origination fee is already reflected on the student's myLipscomb account.
  • PLUS loan approvals received will be divided evenly between fall and spring semesters.  If the loan is for one term, the Parent MUST contact the Financial Aid Office in writing to make the change.
  • If you previously completed a PLUS loan Master Promissory Note with the Department of Education, you have NOT completed the PLUS loan process.  You must complete the steps above in order to be credit approved.  A Master Promissory Note does not mean a credit decision has been made.
  • Once the PLUS loan is approved, you will need to complete a PLUS loan Master Promissory Note (if you did not complete one for an approved loan (without an endorser) in 2013-2014) in order for funds to be released to the school at the appropriate time.
  • Loan disbursement for Sep 23, 2013 and Feb 14, 2014.

 

Questions:  Contact the Donna Taylor