THE FEDERAL PARENT LOAN PROGRAM (PLUS)
Federal Parent Loans for students are available to parents of dependent students
to help meet a student’s educational expenses. Application forms are available from participating lenders and the Financial Aid Office. As of the 2005–2006 academic year,
a Master Promissory Note will be used for the
PLUS Loan. Students for whom the loan is borrowed,
must meet all Title IV eligibility criteria.
Federal Parent Loans do not require a financial
needs test. PLUS loan borrowers are subject
to credit checks. The maximum PLUS is equal
to the cost of attendance at the college less
other expected financial aid. Federal PLUS loans
have a variable interest rate and repayment
must begin sixty days after the loans are disbursed.
LOAN DISBURSEMENT
All Federal Family Educational Loan (subsidized, unsubsidized, and PLUS) borrowers have a loan origination fee equal to 3% of the loan
which is deducted from the original amount. Funds are disbursed for the Student Loan Program by the lender through
the college. For first semester students, funds
may not be disbursed earlier than 30 days from
the beginning of the semester. For continuing
students, funds may not be disbursed earlier
than 10 days prior to the beginning of the semester.
The loan disbursements may be in one or more
payments.
NON FEDERAL ALTERNATIVE LOAN PROGRAMS
Monroe College participates in two private alternative loan programs, Citi-Assist
(Citibank Student Loan Corporation) and Signature
(SALLIE MAE). These loans are generally considered
a good program for international students or those who are not matriculated. These loans may also be used for
prior balances.
Borrowers or their co-signers must be citizens or eligible non-citizens. A
credit check must be passed. Please come to
the Financial Aid Office for more information.
RIGHTS AND RESPONSIBILITIES OF FEDERAL STUDENT LOAN BORROWERS
A FFELP student borrower is not required to begin repayments as long as the student remains enrolled at least half time and for six
months after he/she ceases to be at least half-time.
This is known as a student’s grace period. Repayment
must begin after the grace period ends. However,
payment of principal may further be deferred
for certain categories, such as Public Health
Service Officers, the temporarily disabled,
those in internships required before entering a profession, full-time Peace Corps, VISTA or similar
national volunteer programs, unemployment, and
full-time teachers in shortage areas.
If a student applies for more than one student loan, the application must be
made to the same lending institution where the
original loan was made.
After ceasing to be at least a half-time student, the borrower must make formal arrangements with the lending institution to begin repayment.
The following regulations apply:
- Depending on the amount of student loan, the minimum monthly payment will be $50 plus interest.
- Under extenuating circumstances, the lender, on request, may permit reduced payments.
- Repayment in whole or part may be made at any time without penalty.
- The maximum repayment period is ten years.
- Loans may be consolidated, resulting in longer repayment terms and smaller monthly payments.
- Loans may be repaid through the Income Contingent Program.
- Loans must be paid according to their terms and conditions; missing payments can result in the loan being placed in default.
- Loan borrowers who are experiencing difficulties meeting their loan payments must notify their lending institution to determine the right steps to take to rectify the matter, as well as
the Loan Advocate at the college.
Loan borrowers who have concerns about any aspect of their loans should seek
assistance from the Loan Advocate. If concerns
remain, the Directors of Financial Aid and the
Dean of Student Financial Services are available to discuss any outstanding issues. Borrowers who continue to have unresolved
issues can contact a Loan Ombudsman at 1-877-557-2575
or by Internet http://sfahelp.ed.gov/ http//ombudsman.ed.gov
or by mail to the Office of the Ombudsman, Student
Financial Assistance, U.S. Department of Education,
Room 3012, ROB #3, 7th and D Streets, S.W.,
Washington, DC 20202.
