Parent PLUS Loan Request Form
Office of Financial Aid
601 Broad Street, LaGrange, GA 30240 706-880-8241 | 800-253-9918
2007-2008
Dear Parents,
Your student received an award letter indicating the financial assistance available for the upcoming year at LaGrange College.
Depending on the award, you may require additional assistance in meeting the remaining college expenses. As you contemplate your options, you may want to consider the Federal PLUS Loan, a low-interest, federally funded loan program available to the parents of dependent undergraduate college students enrolled for at least six credit hours.
The Federal PLUS Loan and MPN
A Master Promissory Note (MPN) is a legally binding agreement between you and your lender under which you promise to repay the loan, with interest, in periodic installments. Under an MPN you may receive a loan for a single academic year or multiple academic years. Your MPN will be valid for 10 years from the date you sign the note.
Interest Rate
• The current Federal PLUS Loan interest rate is fixed at 8.5%.
• Many lenders offer interest rate reduction programs that can help you reduce your total interest cost.
Eligibility
• You must be parents, step-parents or adoptive parents of a dependent, undergraduate student who is attending an eligible school at least half-time.
• You must be a U.S. citizen or national, or eligible non-citizen.
• You must have no unresolved defaults or overpayments owed on a Title IV education loan or grant.
• You must pass a minimal credit check. The credit review is a basic screening for adverse credit and does not take your income, assets or debt into consideration.
Borrowing limits
• You may borrow up to the cost of education less other aid received.
• There is no minimum or maximum loan amount, so you can borrow as little or as much as you need for each dependent child enrolled in school.
Applying for a PLUS loan
• For your first loan, you must complete and sign the Federal PLUS Loan MPN. You may be able to do so online, or you can obtain a hard copy from your lender or school. You will only need to complete this form once for each student, for up to 10 years of borrowing.
• For subsequent loans, you will simply need to provide your requested loan amount, and your lender will use your existing MPN to originate the loan.
Disbursement
• Funds are disbursed directly to the school according to the disbursement dates provided by the school.
Repayment
• Repayment begins within 60 days after the final disbursement of the loan.
• The loan repayment term is 10 years. You can pre-pay the loan in whole or in part without penalty.
• To make loan repayment easier, some lenders offer an interest- only repayment option which allows you to make interest-only payments for a period of 24 or 48 months.
The Federal PLUS Loan Application and Master Promissory Note (MPN)
What Parents Should Know About Federal PLUS Loans
Glossary of Terms:
The Language of Education Loans
Capitalization – The process of adding unpaid interest to the principal loan amount, thereby increasing the balance that future interest accrues on, and the total amount to be repaid. To save money, pay interest before it is capitalized.
Cost of Attendance Budget – The estimated annual expenses associated with a student’s attendance at a particular college or university. The budget usually includes tuition, fees, room, board, books, supplies, transportation and other personal expenses.
Default – Failure to repay your FFELP loan, effective when you are 270 or more days delinquent.
Deferment – An authorized period of time during which loan payments may be postponed.
Disbursement – Loan funds issued by your lender by check (normally co-payable to you and the school) or electronic funds transfer.
Electronic Fund Transfer (EFT) – A disbursement method utilized by lenders, which wires funds for Stafford and PLUS Loans electronically to schools for disbursement to the student’s account. This eliminates paper checks that require endorsement.
Forbearance – An arrangement to postpone or reduce a borrower’s monthly payment amount for a limited and specific period, or to extend the repayment period. The borrower is charged interest during periods of forbearance.
Guarantee Fee – A fee charged by the guaranty agency on all Federal Stafford and Federal PLUS Loans. The current guarantee fee is 1% and is paid to the guaranty agency from the loan proceeds.
Guaranty Agency – A state or private not-for-profit organization that guarantees federal student loans made by lenders.
Interest – The amount you pay to borrow money, which becomes part of your monthly payment. Simple daily interest is calculated as a percentage of the outstanding principal balance.
Master Promissory Note (MPN) – The Master Promissory Note is a legal document. By signing it, you promise to repay your current and all future Stafford Loans. Under this note, you may receive loans for a single enrollment period or for multiple enrollment periods.
Origination Fee – A fee charged by the federal government on all Federal Stafford and Federal PLUS Loans. The current origination fee is 2% and is withheld by the lender from the loan proceeds, although some lenders may waive this fee.
How Much Do I Need?
2007-2008
Cost of Attendance
Tuition $ _______________________
Room and Board (if applicable) $ _______________________
Books $ _______________________
Other $ _______________________
Total Cost A $ _______________________
Financial Aid
Total Grants and Scholarships $ _______________________
Perkins Loan $ _______________________
Stafford Loan* (see below) $ _______________________
Total Financial Aid B $ _______________________
Total Balance Due (A-B) C $ _______________________
Total PLUS Loan Needed (C x 103%) $ _______________________
The maximum PLUS Loan that you may borrow is the cost of attendance less your student’s financial aid award. However, LaGrange College encourages you to borrow responsibly.
*Lenders of Subsidized and Unsubsidized Stafford Loans may charge an origination and guarantee fee of up to 3%, to be deducted from the loan amount. In that case, when calculating the amount that will be disbursed to your student’s account, multiply the total loan amount by 97%.
Use the Sample Application Below as a Guide When Completing Your PLUS Loan Application and Master Promissory Note (MPN).
To avoid delay in processing your MPN, follow all instructions and complete all fields. Do not leave any item blank. Instead enter
“none” or “N/A.”Print all information in BLACK ink. Press hard enough so all four copies of the MPN are legible.
BE SURE TO KEEP THE BORROWER COPY FOR YOUR RECORDS.
Section 1.
Use only your full legal name – no nicknames.
Section 2.
Enter your nine-digit Social Security Number. If this item has been completed for you, review it for accuracy. If it is incorrect, cross out the entire incorrect number and print the correct number in this box. Your loan(s) cannot be processed without a Social Security Number.
Section 3.
Insert your permanent home street address, apartment number, city, state and zip code. If you have a P.O. box and a street address, list both.
Section 7.
Enter the two-letter abbreviation for the state that issued your driver’s license, followed by the driver’s license number. If you do not have a driver’s license, enter N/A.
Section 13.
Enter the requested reference information for two adults who do not share a common U.S. address.
The first reference should be a parent (if living), legal guardian, or an adult relative. References with addresses outside the U.S. are not acceptable.
All requested items, including telephone numbers, must be complete or your loan(s) will be delayed. If a reference does not have a telephone, enter N/A in the appropriate space.
Section 21.
Read all the information contained on the Master Promissory Note, sign and date the note in black ink.
2007-2008
2. Social Security Number
4. Home Area Code/Telephone Number ( )
6. E-mail Address
Borrower (Parent) Section Please print neatly in ink or type. Read the instructions carefully.
1. Last Name First Name MI
3. Permanent Street Address (If P.O. Box, see instructions.)
City State Zip Code
WARNING:Any person who knowingly makes a false statement or misrepresentation on this form is subject to penalties which may include fines, imprisonment, or both, under the United States Criminal Code and 20 U.S.C. 1097.
5. Date of Birth (Month/Day/BirthYear)
7. Driver’s License State and Number State #
Borrower Request, Certifications, and Authorizations Read carefully before signing below.
20.I promise to pay to the order of the lender all loan amounts disbursed (hereafter “loan” or “loans”) under the terms of this Application and Master Promissory Note (hereafter “MPN”), plus interest and other charges and fees that may become due as provided in this MPN. I understand that multiple loans may be made to me under this MPN for the dependent identified in the Student Information Section.
I understand that by accepting any disbursements issued at any time under this MPN, I agree to repay the loan(s). I understand that, within certain time frames, I may cancel or reduce the amount of any loan by refusing to accept or by returning all or a portion of any disbursement that is issued. Unless I make interest payments, interest that accrues on my loan(s) during deferment or forbearance periods or other periods will be added as provided under the Act to the principal balance of such loan(s). If I fail to make any payment on any loan made under this MPN when due, I will also pay reasonable collection costs, including but not limited to attorney’s fees, court costs, and other fees. I will not sign this MPN before reading the entire MPN, even if I am told not to read it, or told that I am not required to read it. I am entitled to an exact copy of this MPN and the Borrower’s Rights and Responsibilities Statement. My signature certifies I have read, understand, and agree to the terms and conditions of this MPN, including the Borrower Request, Certifications, and Authorizations printed above, the Notice About Subsequent Loans Made Under This MPN, and the Borrower’s Rights and Responsibilities Statement.
I UNDERSTAND THAT I MAY RECEIVE ONE OR MORE LOANS UNDER THIS MPN AND THAT I MUST REPAY ALL LOANS THAT I RECEIVE UNDER THIS MPN.
21. Parent Borrower’s Signature 22. Today’s Date (Month/Day/Year)
Guarantor, Program, or Lender Identification
9. Lender Name City State Zip Code
Promise to Pay In this MPN, “lender” refers to, and this MPN benefits, the original lender and its successors and assigns, including any subsequent holder of this MPN.
17. Requested Loan Amount: This is an Application and Master Promissory Note (hereafter,
“MPN”) for one or more Federal PLUS Loans. I request a Federal PLUS Loan under this MPN in an amount not to exceed the annual cost of attendance for the student identified in the Student Information Section of this MPN, minus other financial aid that the student receives each academic year. For each loan, the school will notify me of the loan amount that I am eligible to receive. I may cancel my loan or request a lower amount by contacting my lender or the school.
Additional information about my right to cancel a loan or request a lower amount is included in the Borrower’s Rights and Responsibilities Statement and disclosure statements that have been or will be provided to me. If I have an adverse credit history and obtain an endorser to receive a PLUS Loan, only one loan may be made to me under this MPN.
18.Under penalty of perjury, I certify for any loan I receive under this MPN that:
A.The information I have provided on this MPN and as updated by me from time to time is true, complete, and correct to the best of my knowledge and belief and is made in good faith.
B.I am: (i) the biological or adoptive parent; or (ii) the spouse of a parent and my income and assets were reported on the Free Application for Federal Student Aid (FAFSA) or would be reported if a FAFSA were filed.
C.Loan proceeds will be used for authorized educational costs incurred by the dependent student named in the Student Information Section and that I will immediately repay any loan proceeds that cannot be attributed to educational costs for attendance on at least a half-time basis at the school that certified my loan eligibility.
D. (i) I do not now owe an overpayment on a Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, or Leveraging Educational Assistance Partnership Grant (formerly State Student Incentive Grant); or, if I owe an overpayment, I have made repayment arrangements with the holder to repay the amount owed, (ii) I am not now in default on any loan received under the Federal Perkins Loan Program (including NDSL loans), the Federal Direct Loan Program, or the Federal Family Education Loan Program (“FFELP” as defined in the Borrower’s Rights and Responsibilities Statement); or I am in default on a loan and I have made satisfactory payment arrangements with the holder of the defaulted loan.
19.For all Federal PLUS Loans (as described in the additional MPN provisions and the Borrower’s Rights and Responsibilities Statement) I receive under this MPN, and for certain other loans as described below, I make the following authorizations:
A.I authorize the school to certify my eligibility for Federal PLUS Loans under this MPN.
B.I authorize the lender, the guarantor, or their agents, to investigate my credit record and report information concerning my loan status to persons and organizations permitted by law to receive such information.
C.I authorize the school to pay to the lender any refund that may be due up to the full amount of the loan(s).
D.I authorize the school to transfer loan proceeds received by electronic funds transfer (EFT) or master check to my dependent student’s account at the school.
E.I may tell my lender that I want to pay the interest that accrues. However, in all cases, unless I pay the interest, my lender will add the unpaid interest that accrues during forbearance and deferment and other periods on each PLUS Loan made under this MPN to the principal balance of that loan (“capitalization”) as provided under the Act. Capitalization will increase the principal balance on my loan(s) and the total amount of interest costs I must pay.
F.I authorize the release of information pertinent to my loan(s): (i) by the school, the lender, and the guarantor, or their agents, to the references on the applicable loan(s) and to members of my immediate family unless I submit written directions otherwise; and (ii) by and among the schools, lenders, guarantors, the U.S. Department of Education (the Department), and their agents.
G.So that the loan(s) requested can be approved, I authorize the Department to send any information about me that is under its control, including information from the FAFSA, to the school, to the lender, and to state agencies and nonprofit organizations that administer financial aid programs under the FFELP. I understand that information reported on this MPN may be shared with the Department, and that the Department has the authority to verify that information with other federal agencies.
H. I authorize my lender to defer repayment of principal on my loan(s) based on my in-school status.
OMB No. 1845-0069 Form approved Exp. date 01/31/2006
11. Employer (Name, Address, City, State, Zip)
13. Borrower References: You must provide two separate references with different U.S. addresses who have known you for at least three years. Both references must be completed in full. Do not list the student as a reference.
Name A. B.
Permanent Address City, State, Zip Code E-mail Address
Area Code/Telephone Number ( ) ( )
Relationship to Borrower
10. Lender Code, if known 8. U.S. Citizenship Status (Check a or b, and if b is checked, list Registration No.)
Ra. Citizen/National Rb. Permanent Resident/Other Eligible Non-Citizen If “b”, Alien Registration No.
Additional MPN provisions follow 15. Social Security Number
14. Last Name First Name MI
Student Information Section
16. Date of Birth (Month/Day/Birth Year)
12. Employer Telephone Number ( )
Federal Family Education Loan Program (FFELP) Federal PLUS Loan
Application and Master Promissory Note
Wachovia Education Finance
OMB No. 1845-0069 Form Approved Exp. date 03/31/2008
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Printed compliments of Wachoiva, a preferred lender for LaGrange College
Federal PLUS Loan for Parents Request Form
*Parent’s Name – Last Name *First Name *Middle Initial
*Parent’s Social Security Number Parent’s Date of Birth
*Permanent Street Address *City *State *Zip
*Home Telephone Work Telephone
Driver’s License Number/State Residency
U.S. Citizen: YES NO If NO, Alien ID#
Student’s Name – Last Name First Name Middle Initial
Student’s Social Security Number Student’s Date of Birth
Requested Loan Amount Academic Period
*All fields are required; however, asterisk fields are required to determine credit eligibility.
PREFERRED LENDER LIST
Wachovia 1-800-338-2243
www.wachovia.com/education Lender Code: 830005
EdAmerica 1-800-EDSOUTH www.edamerica.net Lender Code: 831453
Citibank 1-800-967-2400 www.studentloan.com Lender Code: 826878
Other:
___________________________
Lender Code:
___________________________
SunTrust Bank 1-800-208-9729 www.suntrust.com Lender Code: 824135
Bank of America 1-800-633-7192
www.bankofamerica.com Lender Code: 831846
Georgia Student Finance Authority 1-800-688-7878
www.gsfc.org Lender Code: 822573
Check here if you have any concerns about your creditworthiness and would like to have a PLUS pre-screen conducted. Please be advised that this will create a hit on your credit report.
I authorize the school, on my behalf, to process a PLUS Pre-screen which initiates a review of my credit history against the PLUS credit criteria and authorizes the lender to obtain a credit report for that purpose. In order to assist the Office of Financial Aid at LaGrange College in the completion of the financial aid package for the student named above, I authorize the school to receive notification of the results of the review of the PLUS Pre-screen.
By signing below, I understand that I am authorizing the Office of Financial Aid at LaGrange College to provide my lender with any information that is necessary for me to obtain a Federal PLUS Loan.
Parent Borrower’s Name (please print): ______________________________________________________________________________________________________________
Parent Borrower’s Signature: _____________________________________________________________________ Date: ___________________________________________
School Section Only:
Certified Amount Transmission Date
Approved Denied Unsub
Initials Date Office of Financial Aid
601 Broad Street, LaGrange, GA 30240 706-880-8241 | 800-253-9918
2007-2008
___ / ___ / ___ to ___ / ___ / ___
mo day yr mo day yr
$
Preferred Lender List
Lender Phone Number Lender Code Loan Servicer Lender Web Address
Wachovia 1-800-338-2243 830005 AES www.wachovia.com/education
Citibank 1-800-967-2400 826878 Citibank www.studentloan.com
EdAmerica 1-800-337-6884 831453 Edfinancial www.edamerica.net
SunTrust Bank 1-800-208-9729 824135 Nelnet www.suntrust.com Georgia Student
Finance Authority 1-800-688-7878 822573 GSFC www.gsfc.org
Bank of America 1-800-633-7192 831846 Nelnet www.bankofamerica.com
