Parents: Please submit PLUS loan applications before Friday, July 11, 2008; applications submitted after July 11 may not be guaranteed by the payment deadline.

Overview

Parent Loans for Undergraduate Students (PLUS) is a federal program available to help parents of dependent students finance their family contributions. The yearly limit is equal to the student's cost of attendance at Keene State College minus any other financial aid for which the student is eligible. The interest rate is fixed at 8.5%. Parent borrowers will pay a fee of up to four percent of the loan, deducted proportionately each time a loan payment is made. The PLUS loan goes into repayment within 60 days of the second loan disbursement. There is no grace period for these loans, and interest begins to accumulate at the time the first disbursement is made. Parents will begin repaying both principal and interest while their student is in school.

Eligibility Requirements

• Parent (or stepparent) of dependent, undergraduate student enrolled at least half-time
• Approved credit check from lender (based on credit history)
• US citizen or eligible non-citizen

For more information, visit the Federal Student Aid website.

Parents have the option to work with any lender and may choose a lender with whom they have an established financial relationship (see note below).

Some Frequently Used Lenders at KSC Are

• Bank of America
• The NHHEAF Network
• Citizens Bank/Sallie Mae
• Vermont Student Assistance Corporation (Vermont residents only)

Please Note:

• The lenders listed above are not an exclusive listing of all available PLUS loan lenders.
• Parents are encouraged to complete their own research and to choose a PLUS loan program that best meets their financing needs.
• The steps below pertain to frequently used PLUS loan lenders at KSC.
• See Note to Parents On The Use of Other PLUS Loan Lenders below.

Apply for a PLUS Loan

First Steps

1. Select a PLUS loan lender.
2. Submit an online application.
3. Student Financial Services will then:
   1. Verify borrower eligibility when we receive the application from your lender.
   2. Certify the application, if the student/borrower is deemed eligible, and forward it to the lender (allow 7-10 business days).

Final Steps

4. Parent completes the Master Promissory Note (MPN) with the lender.
5. Our office will mail the student an award notification listing the PLUS loan.
6. The lender will guarantee the loan and send a disclosure statement identifying the disbursement amounts per semester.
7. Disbursement amounts may be deducted from the semester's tuition bill.

Note to Parents On The Use of Other PLUS Loan Lenders

Should a parent wish to apply for a PLUS loan using a lender that is not listed above, please note that the process will be different from the process explained. The process will be dictated by the lender they have chosen. In addition, the funds will be disbursed via a paper check (instead of EFT) payable to the borrower and the school. When received, the paper check will be forwarded to the parent borrower for signature. The signed check must then be returned to the school for processing. If a balance is due, credit will be given on the student's account. If the account is paid in full, a refund check will be issued and mailed to the parent borrower.

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