SU- Loans

UNDERGRADUATE LOANS AVAILABLE:

FEDERAL PARENT PLUS LOAN

The Federal PLUS Loan is a long-term, fixed-rate loan funded by participating banks, savings and loan associations and credit unions and is guaranteed by state or government agencies. The loan is available to parents and step-parents of undergraduate students. It allows parents to supplement their student's financial aid package by borrowing money to cover any costs not already covered by the student's aid. Families that need additional financing for educational expenses should consider a Federal PLUS Loan.

Credit Eligibility – Parents must meet general financial aid standards, such as meeting citizenship requirements and not owing a refund to any Federal Aid programs. Your parent borrower will ALSO be required to pass a basic credit check. Generally, borrowers without credit blemishes such as the examples listed below are deemed creditworthy.

90 days or more delinquent on repayment of any debt
debt discharged in bankruptcy during the past 5 years
default, foreclosure, tax lien, repossession, wage garnishment, or write-off of debt during the past 5 years

How much to borrow – Parents are encouraged to budget their costs for the entire year to determine the PLUS loan needed, and then submit one PLUS application to cover those costs.

To view your educational costs, estimate your loan needs, and determine your potential monthly loan payments, please check your Financial Aid Portfolio on http://myslice.syr.edu. You can also determine your potential monthly PLUS Loan payment by using a Loan Payment Calculator.

When to Apply for a PLUS Loan – You must apply by June 1st for your PLUS to appear on your Fall bursar bill (Nov 1st for Spring).

Returning borrowers – If you apply by May 1st, your PLUS Loan will be included with your financial aid package on your student's Financial Aid Portfolio in early June.

Any applications completed after the deadlines listed above will be processed as they are received and will take up to 10 business days to appear on your student's Financial Aid Portfolio at http://myslice.syr.edu.

How to Apply for a PLUS Loan

You apply for your Federal PLUS Loan one year at a time. For example, you can apply now for a Federal PLUS Loan to cover the Fall 2008 and Spring 2009 educational expenses. You then reapply each year for the loan.

Your first PLUS Loan requires an extensive application process, which includes a credit check and the completion of a Master Promissory Note (MPN). Once your MPN is on file, subsequent applications only require a new credit check if the old one has expired (credit is good for 180 days) and by informing us of the amount you want to borrow.

STEP 1: You (Parent) complete the application.

Please note: If you have more than one student at SU and will be borrowing a loan for each of them, you will need to complete this step for each student separately.

New borrowers- use these directions if you have NEVER BORROWED a Federal PLUS loan at SU before or if you are choosing a new lender.

Returning Borrowers- Use these directions if you HAVE BORROWED a Federal PLUS loan at SU for before and want to borrow another one.

STEP 2: New York State Higher Education Services Corporation (NYS HESC) transmits your application to SU for certification.

What happens	What to look for
If credit approved, NYS HESC will transmit your completed application to our office.	FA Portfolio – a “PLUS Application Received” task in completed status and a PLUS loan included in award listing Award notification e-mail from our office

STEP 3: SU transmits your certified loan to NYS HESC and your lender for final approval and disbursement.

What happens	What to look for
We will transmit your certified PLUS application back to NYS HESC. (For 2008-09 loans, we will begin this step in August 2008). HESC will make note of the certified amount and then send the application on to your lender.	A Loan Disclosure Statement from your lender. This should include the terms of your loan and estimated repayment information.

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