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2010-2011 Loans and Counseling Information for Returning Students
Federal Direct PLUS loan:
The federally sponsored PLUS loan is a low-interest student loan for the parents of dependent undergraduate students, who are attending at least half-time. The interest rate is a fixed 7.9%. There is a 2.5% net fee (4% origination fee less an upfront rebate of 1.5% that assumes 12 on-time monthly payments) deducted from each disbursement of a PLUS Loan.
Loan funds are disbursed directly to Paul Smith's in equal amounts over each term of enrollment for the academic year. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid. PLUS loans must be processed according to federal regulations, which stipulate that a loan cannot be processed after the end of the loan period. Thus, you cannot use a federal PLUS loan to pay a back balance.
To apply for the Federal PLUS loan go to www.studentloans.gov, sign in with parent FAFSA PIN and complete the PLUS application and the PLUS Master Promissory Note (MPN).
**Both MUST be completed for funds to be disbursed.
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