Federal Parent PLUS Loans

Information regarding processing changes affecting all Federal Parent PLUS Loans for Undergraduate Students (PLUS) starting for the 2010-2011 academic year (summer/fall/spring)

As you may have heard, effective July 1st, 2010, Paul Smith’s College is changing the way we process federal student and parent loans beginning with the 2010-2011 academic year.  The Financial Aid Office has put together this brief letter to provide you with a better understanding of the new loan process. 

Why the change?

Economic issues, including the recent sub prime lending crisis, coupled with regulatory changes to the student loan industry.  After careful consideration and review of these issues and changes, the College concluded that a change to the Direct Loan program would be more beneficial to students and parents.

How does this affect you?

If you are or were a borrower of a Federal PLUS Loan from a bank or credit union, you will now borrow these loans directly from the federal government through the William D. Ford Federal Direct Loan Program.

What are the benefits of the Direct Loan Program?

          *Consistent access to loan funds directly from the U.S. Department of Education
          *Competitive rates and repayment options available to all borrowers
          *Simple application process
          *Quick receipt of funds
          *Excellent customer service

What happens next?

For information on borrowing a Federal Direct PLUS loan, please visit our website at www.paulsmiths.edu-Office of Financial Aid-Loans- Federal PLUS

What do I have to do if interested in borrowing a PLUS loan?

Print out and complete the 2010-2011 Federal Direct Parent PLUS Loan Application from our website and send it to The Financial Aid Office along with a copy of driver’s license.

How will I know if I’m approved or denied?

You will receive written notification from the Direct Loan Servicing Center regarding the credit decision. 

When and how will the funds be applied?

Funds will be applied directly to the student’s account in equal installments throughout the academic year.  Any excess funds that cause a credit to the student’s account will remain on their account. 

The Financial Aid Office
Paul Smith's College
PO Box 265
Paul Smith’s NY 12970
518-327-6220 Office
518-327-6055 Fax