Federal Direct Parent PLUS Loan Information Guide & Request Form
Disclosure Notices
Loan Disclosures
Direct Loan Disclosure Statement
You will receive a Federal Direct Loan Disclosure Statement from the Direct Loan Servicing Center, up to 30 calendar days before the first anticipated disbursement. The Disclosure Statement identifies the loan type, anticipated loan disbursement amounts and dates, anticipated net disbursement amounts, loan fee and fee rebate amount, and gives other important information regarding your loan.
Use of Loan Funds
Funds received from the Federal Direct PLUS Loan are to be used solely for expenses related to the student’s attendance at CSU Long Beach. Expenses include tuition, room and board, books, transportation costs, etc.
Loan Cancellation
Before your funds are disbursed, you may cancel or reduce the amount of your loan by notifying CSU Long Beach’s Office of Financial Aid in writing. If your loan has already been disbursed, you can still cancel the loan in one of two ways: (1) You may contact CSU Long Beach (in writing) within 14 days of the date the loan has been applied to your dependent student’s account, or (2) You can pay back all or a part of your loan to Direct Loans within 120 days of the date your loan funds disburse to the university. Your loan will be adjusted to eliminate any interest, loan fee, and rebate amount that applies to the amount of the loan that you cancel/return during this timeframe.
Payment of Interest
Interest begins accruing on the Direct PLUS Loan from the date the loan is first disbursed – including during periods of deferment or forbearance – until it is repaid in full. If you do not pay the interest as it is charged, Direct Loans will capitalize the interest (add it to the unpaid principal amount of your loan) when you enter an active repayment status. Capitalization increases the unpaid principal balance of your loan, and interest will then be charged on the new, increased principal amount. The chart below shows the difference in the amount you would repay on a $15,000 PLUS Loan if you pay the interest as it is charged during a 12-month deferment or forbearance period, compared to the amount you would repay if you choose to not pay the interest and instead have it capitalized.
| If you pay the interest as it is charged. . . | If you do not pay the interest and it is capitalized . . . | |
|---|---|---|
| Loan Amount | $15,000 | $15,000 |
| Capitalized Interest for 12 months | $0 | $1,185 |
| Principal to be Repaid | $15,000 | $16,185 |
| Monthly Payment (standard Repayment Plan) | $181 | $196 |
| Number of Payments | 120 | 120 |
| Total Amount Repaid | $21,744 | $23,462 |
Information you must report
While you or your dependent student are still in school, you must notify the Office of Financial Aid at CSU Long Beach if (1) you change your address or telephone number; (2) you change your name (for example, maiden name to married name); (3) you or your dependent student do not enroll at least half-time for the loan period certified by the university; (4) you or your dependent student stop attending CSU Long Beach or drop below half-time enrollment; or (5) you or your dependent student graduate or transfer to another school. You must also notify the Direct Loan Servicing Center of any of the above changes at any time after you receive your loan. In addition, you must notify the Direct Loan Servicing Center if you (1) change employers, or if your employer’s address or phone number changes; or (2) have any other change in status that affects your loan (for example, if you received a deferment but no longer meet the eligibility requirements for that deferment).
Privacy Act Disclosure Notice
The Privacy Act of 1974 (5 U.S.C.552a) requires that the following notice be provided to you. The authority for collecting the information requested on this form is §451 et seq. of the Higher Education Act of 1965, as amended. Your disclosure of this information is voluntary. However, if you do not provide this information, you cannot be considered for a Direct PLUS Loan. The information on this form will be used to determine your eligibility for a Direct PLUS Loan. The information in your file may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called "Title IV Program Files" (originally published on April 12, 1994, Federal Register, Vol. 59 p. 17351) and "National Student Loan Data System" (originally published on December 20, 1994, Federal Register Vol. 59 p. 65532). Thus, this information may be disclosed to federal and state agencies, private parties such as relatives, present and former employers and creditors, and contractors of the Department of Education for purposes of administration of the student financial assistance program, for enforcement purposes, for litigation where such disclosure is compatible with the purposes for which the records were collected, for use by federal, state, local, or foreign agencies in connection with employment matters or the issuance of a license, grant, or other benefit, for use in any employee grievance or discipline proceeding in which the Federal Government is a party, for use in connection with audits or other investigations, for research purposes, for purposes of determining whether particular records are required to be disclosed under the Freedom of Information Act, and to a Member of Congress in response to an inquiry from the congressional office made at your written request.
Because we request your social security number (SSN), we must inform you that we collect your SSN on a voluntary basis, but section 484(a)(4) of the HEA (20 U.S.C. 1091(a)(4)) provides that, in order to receive any grant, loan, or work assistance under Title IV of the HEA, a student must provide his or her SSN. Your SSN is used to verify your identity, and as an account number (identifier) throughout the life of your loan(s) so that data may be recorded accurately.