PLUS Loan Information
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What if my student receives more scholarships and I end up borrowing more loan money than I need?
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Who do I contact if I have questions about applying for the PLUS loan?
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| Q | - | What are the steps for a parent to apply for a PLUS loan? |
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| A | - | Parents of dependent undergraduate students may follow these steps to apply for the PLUS loan: |
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Select a lender. To compare benefits from a list of lenders that FPU has used in the past, click here. You may also choose to use any lender not on this list.
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Once you have chosen the lender with whom you would like to borrow, you must fill out a PLUS Loan Master Promissory Note (MPN).
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During the application process a credit check will be performed. You will find out immediately whether or not you are approved to borrow the PLUS loan; notification will also be sent to FPU. If you are approved, you will be allowed to complete and e-sign the PLUS MPN. If you are denied please contact your student’s financial aid counselor to discuss other funding options.
| Q | - | Who can apply for a PLUS loan? |
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| A | - | Parents of dependent undergraduate students (as determined by the FAFSA). |
| Q | - | If I would like to make monthly payments towards my student’s direct costs at FPU, what other options do I have besides the PLUS loan? |
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| A | - | FPU provides several payment plan options for students who wish to make payments on the remaining balance of their direct costs. Once you have received your financial aid package you may set up a payment plan. Although the student needs to set up the payment arrangement, parents may make payments on the student’s behalf. |
| Q | - | How much can I borrow under the PLUS loan? |
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| A | - | Parents who are approved for the PLUS loan may borrow up to the cost of attendance minus the student’s financial aid per academic year. |
| Q | - | What do I need to do to apply and qualify for a PLUS loan? |
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| A | - | Follow the steps on this website to apply for the PLUS loan. This involves completing a credit check and then, if you are approved, completing a PLUS Loan Master Promissory Note. Click here for the steps to apply. |
| Q | - | How do I receive my PLUS loan funds? |
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| A | - | Once your student has submitted all requested documents to FPU and you have been approved for the PLUS loan and completed the PLUS MPN, FPU will request your loan. The entire process is electronic and is coordinated by the FPU Student Financial Services Office. The loan disbursements will be scheduled to arrive at the beginning of each semester for which you borrowed the loan. If the loan is requested after the semester begins, it will be scheduled to arrive at FPU as soon as possible. |
| Q | - | Are there any fees associated with borrowing the PLUS loan? |
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| A | - | Each lender charges an origination fee on the loan before it is disbursed. The origination fee is deducted from the loan disbursement before it is sent to FPU. The loan guarantor may also charge a default fee on every loan. Some lenders pay the default fee for the borrower. For example, if the lender charges a 3% origination fee (and there is no default fee) and you borrow a loan for $1000 your disbursement will be $970. |
| Q | - | What if I am denied for the PLUS loan? |
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| A | - | If the parent is not approved to borrow the PLUS loan based on credit check results, the student may borrow an additional Unsubsidized Stafford Loan. Freshmen and sophomores may borrow up to an additional $4000 and juniors and seniors may borrow up to an additional $5000 (not to exceed their cost of attendance). |
| Q | - | What is the interest rate on the PLUS loan? |
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| A | - | The interest rate on a PLUS loan while the student is in school and during repayment is currently 8.50% for loans made after July 1, 2006. |
| Q | - | When do I have to start repaying the PLUS loan? |
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| A | - | Repayment begins after the loan is completely disbursed, however, many lenders offer interest only payments or may defer payments completely for up to four years while your student is in school. We recommend that you contact the lender you have selected to discuss repayment options. |
| Q | - | Can I estimate how much my PLUS loan payments will be? |
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| A | - | Once your PLUS loan is fully disbursed, the lender you chose will contact you to let you know what your monthly payment amount will be and when the payments will begin. Many lenders offer interest only payments or may defer payments completely for up to four years while your student is in school. We recommend that you contact the lender you selected to discuss repayment options. In the meantime, you can use a loan repayment calculator to estimate what your monthly payments will be. |
| Q | - | What if my student receives more scholarships and I end up borrowing more loan money than I need? |
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| A | - | Each time a PLUS loan disbursement is sent to FPU, the Student Financial Services Office will verify student enrollment and eligibility and apply the loan to the student’s FPU account. If you would prefer that all or part of your PLUS loan be returned please contact your student’s financial aid counselor at 559-453-2041 or sfs@fresno.edu. |
| Q | - | Who do I contact if I have questions about applying for the PLUS loan? |
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| A | - | You may call Nelnet's College Planning (FPU’s lending service partner) at 866-866-7372 or contact your student’s financial aid counselor at 559-453-2041 or sfs@fresno.edu. |
