Federal Direct PLUS Loan Application Process

Federal Direct PLUS Loan Application Process

What is a Federal Direct PLUS Loan?

  • A loan made through the federal government in the parent's name.
  • Credit worthiness is required.
  • Low, fixed interest rates.
  • Multiple repayment options.
  • Get more information at intranet.bloomu.edu/aid/guide/loans

Who may apply for a Federal Direct PLUS Loan?

  • Parent borrowers of dependent undergraduate level students.
  • Student must be enrolled in a degree level program at least half-time.
  • Student must meet eligibility requirements at intranet.bloomu.edu/aid/aid/eligibility.
  • The parent borrower must be the dependent student's biological or adoptive parent.  A stepparent is also eligible to borrow a Federal Direct PLUS Loan only if their income and assets were used on the student's Free Application for Federal Student Aid in the academic year that loan is being requested.  A legal guardian is not considered an eligible borrower.
  • Federal regulations require that in order to receive Federal Direct PLUS Loan the parent borrower cannot be in default or have an overpayment of federal aid.  Please contact the Office of Financial Aid if you have questions about your eligibility.
  • If you have federal loan(s) previously discharged due to disability, check with your loan servicer as to how a new federal loan may affect the discharged loan(s) before you apply for a new loan.

When you should apply?

Please use the following as to when you should apply for the loan. The credit check is only valid for 180 days.  Applying too early may require the parent borrower to recomplete the application process if credit expires before disbursement of the loan can be made.

  • Loan Term Beginning Summer 2019 - Apply on or after April 8, 2019
  • Loan Term Beginning Fall 2019 - Apply on or after April 8, 2019
  • Loan Term Beginning Spring 2020 - Apply on or after November 1, 2019

Federal Direct PLUS Loan applications must be certified by the Office of Financial Aid by the last day of the semester.  Therefore the parent borrower must complete all steps at least one day prior to the end of the semester.

How do I apply for a Federal Direct PLUS Loan?

PLEASE READ ALL INSTRUCTIONS.  It is important that you complete all steps to insure that your loan is properly processed.  Failure to do so will delay the certification of your loan.  This process must be completed by the parent borrower, not the student.

STEP 1 - Determine Credit Eligibility for Loan

  • Visit studentloans.gov.
  • The parent borrower must sign in using their own FSA ID number, not the student's.  The parent borrower not the student must complete this.
  • If you have multiple students enrolled needing a PLUS Loan, a separate PLUS Loan Application must be submitted for each student.
  • Select "Apply for Direct PLUS Loan".
  • Select "Direct PLUS Loan Application for Parents".
  • Select an Award Year - Make certain you select the correct Award Year or the loan will not be processed.
    • Award Year 2019-2020 (Summer 2019, Fall 2019, Spring 2020)
  • Complete requested information and follow instructions given.
    • Award Range - When prompted select the appropriate dates you wish to have this loan processed for.  You may apply for one semester at a time or multiple semesters in an academic year.
    • Loan Amount Requested - When prompted indicate the amount you wish to have processed for the award range.  Amount requested will be split between semester(s) indicated in the award range.  Please indicate whole dollars, no cents.  If you want the maximum, you may indicate maximum.  An origination fee of 4.248% of the borrowed amount will be deducted by the federal processor when the loan is disbursed.  Estimate this amount in your amount requested.  For example, a $5,000 loan will have an approximate net disbursement of $4,787.
  • The credit decision will be provided at the end of the process.  If the credit is approved, proceed to STEP 2 - Submit PLUS Master Promissory Note (MPN).  If the credit is denied, the parent may appeal or apply with an endorser.  For instruction on how to do this, please contact Applicant Services at 800-557-7394.  If parent is not able to appeal or apply with an endorser, the student may submit a request in order for additional loan to be processed in the student's name.
  • For technical issues or have questions, please call Applicant Services at 800-557-7394.

STEP 2 - Submit PLUS Master Promissory Note (MPN)

The PLUS Master Promissory Note (MPN) is a legal document that holds the parent borrower, not the student, responsible for repayment of current and future loans.  The MPN is valid for 10 years and does not require you to complete another MPN for subsequent borrowing unless the original MPN was approved with an endorser.  If an endorser is required, future borrowing will require that a new MPN be submitted.

  • Visit studentloans.gov.
  • The parent borrower must sign in using their own FSA ID number, not the student's.  The parent borrower not the student must complete this.
  • If you have multiple students enrolled needing a PLUS Loan, a separate PLUS MPN must be submitted for each student.
  • Select "Complete Loan Agreement (Master Promissory Note)".
  • Select "PLUS MPN for Parents".
  • Complete requested information and follow instructions given. 
  • For technical issues or have questions, please call Applicant Services at 800-557-7394.

STEP 3 - What Happens Next?

  • Our office will certify your loan once all required information has been received (i.e. completed FAFSA, completed MPN, verification of at least half-time enrollment in an eligible program, and satisfactory progress earned).
  • If the parent borrower has never borrowed a Federal Direct PLUS Loan for this student at Bloomsburg University, the parent will be sent an email to the email address provided in the application process asking to confirm their parental relationship to the student.  Certification will not occur until a reply is received.
  • You can find your loan on the student's MyHusky Self-Service Account when it has been processed.
  • In order for the loan to be disbursed, the parent borrower must complete all required steps above before the last day of enrollment for the term in which the loan is processed.  The student must be enrolled at least half-time at the time of disbursement.
  • The funds will be delivered through Electronic Funds Transfer (EFT) directly to the student's school account.  Get more information on tentative disbursement dates.
  • Information on how to reduce or cancel the loan can be found at intranet.bloomu.edu/aid/reduce_loan.  Once disbursement of funds has been made, you have 30 days to request the Bursar Office to return funds.