Parent PLUS Loan Overview

CSU Long Beach
Office of Financial Aid

Details about available financing solutions and the financial aid process at CSU Long Beach.

FAFSA Application Site

Complete the Free Application for Federal Student Aid online.

Federal PIN Site

Obtain your Federal PIN. Enables you to sign Federal Financial Aid Forms electronically. Direct Loan Website
www.direct.ed.gov/parent.html General information about the Direct Loan programs available to students and parents.

Direct Loan MP3N Site

As part of the Direct PLUS Loan process for 2009-2010, you will need to complete a Direct PLUS Loan MPN – whether or not you’ve previously borrowed a Federal PLUS Loan.

Direct Loan Servicing Site

Access your Direct Loan account information online.

Loan Repayment Calculator

Useful tool to help you calculate estimated loan payments for your Direct PLUS Loan.

Annual Credit Report Website

The official site to help consumers obtain their free credit report. This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.

Direct Loan Borrower Services
1-800-848-0979

Obtain assistance with your loan application, credit decision, and account information.

Eligibility Criteria

To be eligible for the Parent PLUS Loan, both the Parent & Student must be U.S. citizens or eligible non-citizens, and neither can be in default on a prior educational loan. In addition, the student must be enrolled at least half-time and making Satisfactory Academic Progress towards her/his degree.

Creditworthiness

In addition to the general eligibility criteria listed above, the parent borrower must meet federally defined creditworthiness standards. The parent borrower cannot be:

• 90 days or more delinquent on the repayment of any debt; or
• The subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.

If your application is credit-denied, you have the following options:

• Appeal the denial directly with the Direct Loan Servicing Center at (800) 557-7394.
• Review the information on your credit report and correct any inaccurate information that may have led to the denial. Contact the Direct Loan Servicing Center at (800) 557-7394 for instructions on how to reapply & provide documentation that the incorrect items have been corrected.
• Obtain an endorser for your loan (a co-borrower). The endorser must pass the credit check and sign promissory note.
• Allow the student the option to receive up to $4,000 additional funds through the Federal Direct Unsubsidized Loan.

Loan Fee

There is a 4% Origination fee on the PLUS Loan; Direct Loans provides an immediate 1.5% rebate on this origination fee – resulting in a net fee of 2.5%, which will be deducted from the gross amount of the loan borrowed. For example, if you borrow $10,000, you will actually receive $9,750 – or $250 less. The rebate becomes permanent if you make your first 12 monthly payments on time, the rebate becomes permanent. If you fail to make the first 12 monthly payments on-time, a charge for the rebate amount (i.e., $250) will be added to the outstanding balance of the loan.

Interest Rate

The Direct PLUS Loan has a fixed interest rate of 7.9%. This rate remains in effect throughout the life of the loan. Annual Loan Limit: The annual maximum that can be borrowed is the student’s cost of attendance minus any other aid received.

Terms of Repayment

Repayment of the PLUS Loan begins 60 days after the loan has been fully disbursed. Parents may choose to defer payments on their PLUS Loan until six months after the date the student ceases to be enrolled at least half-time and to make interest-only payments, or to defer interest payments and allow interest to be capitalized quarterly. A parent also has the option to choose not to defer payment, and can begin repaying both principal and interest while the student is in school. The standard repayment term is 10 years; in addition to selecting from a number of repayment plans, the borrower may have the option to extend repayment up to 25 years.

Disbursement of Funds

Funds from the Parent PLUS Loan are disbursed directly to CSU Long Beach in two equal amounts – typically once at the beginning of each semester. The exact disbursement dates will be stated on the Official Loan Disclosure Statement you’ll receive from the Direct Loan Servicing Center. Loan proceeds are received electronically and are credited towards any outstanding registration fees and/or housing charges. Any remaining funds are then issued to the parent borrower as a refund.

PLUS Loan Cancellation

At any time before the Parent PLUS Loan is disbursed, the parent may decline all or part of the Parent PLUS Loan by notifying CSU Long Beach’s Office of Financial Aid in writing. You also have the right to cancel all or part of your federal loan disbursement within 14 days of the loan disbursement. Again, just notify CSU Long Beach’s Office of Financial Aid in writing of your request. In either situation, the PLUS Loan and loan fee will be reduced or eliminated in proportion to the loan amount cancelled.