UW Colleges Money Matters
PLUS Parent Loan Application Process
The Federal Parent Loan for Undergraduate Students or PLUS Loan is available to parents of Dependent students. Dependency is determined by the student's answers to the following questions:
- Were you born before January 1, 1985 if for the 2008-2009 academic year (before January 1, 1986 for the 2009-2010 academic year)?
- Are you enrolled as a graduate or professional student (master's or doctorate program)?
- As of today, are you married?
- Do you have children who receive more than half of their support from you between July 1, 2008 and June 30, 2009 if for the 2008-2009 academic year (between July 1, 2009 and June 30, 2010 for the 2009-2010 academic year)?
- Do you have dependents (other than children or spouse) who live with you and who receive more than half of their support from you, now through June 30, 2009 for the 2008-2009 academic year (now through June 30, 2010 for the 2009-2010 academic year)?
- Are you an orphan (both parents deceased), or are you (or were you until age 18) a ward/dependent of the court (if for the 2008-2009 academic year)? At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent/ward of the court (if for the 2009-2010 academic year)?
- Are you a veteran of the U.S. armed forces?
- Are you currrently serving on active duty in the US Armed Forces for purposes other than training?
The following additional Dependency questions apply for the 2009-2010 academic year:
- Are you or were you an emancipated minor as determined by a court in your state of legal residence?
- Are you or were you in legal guardianship as determined by a court in your state of legal residence?
- At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
- At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
- At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or was self-supporting and at risk of being homeless?
If the student is able to answer "Yes" to any of these questions, then he or she is Independent and thus the parent is not eligible to apply for a PLUS Loan.
If the student answers "No" to all of the questions, he or she is Dependent and thus the parent is eligible to apply for the PLUS Loan.
Although submitting a Free Application for Federal Student Aid (FAFSA) is not a requirement for a PLUS Loan, it is encouraged that students submit a FAFSA so that they can receive the maximum student financial aid for which they are eligible, including Federal Stafford Loans.
PLUS eligibility requirements include, beyond the student's meeting general eligibility requirements for federal student financial aid:
- the student must be degree seeking and enrolled for at least 6 credits per semester/term.
- the student must be meeting Satisfactory Academic Progress.
- both the student and parent must be U.S. citizens or eligible noncitizens.
- the student or parent cannot be in default on a federal student loan or owe a refund on any federal student aid program.
- if the student officially withdraws from all classes before completing 60% of a term/semester or stops attending all classes (otherwise unofficially withdraws), this may result in your owing a repayment for unearned PLUS Loan monies to UW Colleges.
The maximum PLUS Loan that may be awarded is:
Student's Cost of Attendance
- (minus) All other aid that the student receives
= Maximum PLUS Loan amount
The parent PLUS borrower will be subjected to a credit check as part of the application process. If approved, the PLUS Loan proceeds will be applied to the student's UW Colleges account toward tuition, fees, etc. Any remaining PLUS funds will be mailed to the parent borrower. PLUS Loan disbursements will be made in line with the period of the loan: one disbursement each for both fall and spring if for the academic year or one disbursement if for fall or spring only. If requesting an additional PLUS Loan for the same award year, the online preapproval process should not have to be repeated if the original credit approval still is active.
Interest begins to accrue upon disbursement and repayment of principal and interest begins within 60 days of the loan being fully disbursed for the corresponding award period. The fixed interest rate for loans will not exceed 8.5%. More detailed information as to the terms of the loan, fees, and repayment options will be provided by the lender. Information also will be available as the parent completes the Preapproval Process and PLUS Master Promissory Note (MPN), both online.
If the PLUS application is not approved for credit, the parent might still be able to receive a PLUS Loan (working with the lender) if it can be demonstrated that extenuating circumstances exist or if someone else who can pass the credit check agrees to endorse the loan and promises to repay it if the parent fails to do so. With a PLUS denial for credit, the student then may be offered additional Unsubsidized Stafford Loan funds. The student must request the additional Unsubsidized Stafford from the UW Colleges Student Financial Aid Office by way of a Federal Stafford Loan Request Form: 2008-2009 Academic Year/Summer 2009, 2009-2010 Academic Year/Summer2010.
In order to apply online for a PLUS Loan:
- The student has been admitted to one of the University of Wisconsin Colleges campuses: Baraboo/Sauk County, Barron County, Fond du Lac, Fox Valley, Manitowoc, Marathon County, Marinette, Marshfield/Wood County, Richland, Rock County, Sheboygan, Washington County, Waukesha, or the UW Colleges Online-degree program.
- The student has applied for financial aid using the Free Application for Federal Student Aid (FAFSA) and the FAFSA information was released to UW Colleges. Subsequently, a PLUS Parent Loan was offered on a UW Colleges Financial Aid Award Offer and the completed Award Offer with an accepted PLUS Parent Loan award has been returned to UW Colleges.
Submission of the FAFSA is not required to apply for the PLUS; however it is strongly recommended that the student does complete a FAFSA for consideration of all aid programs before the parent opts to apply for the PLUS Loan. If the student will not be filing a FAFSA and the parent wishes to apply for a PLUS, the PLUS Parent Loan Worksheet (2008-2009 Academic Year/Summer 2009, 2009-2010 Academic Year/Summer 2010) must be completed and submitted to the UW Colleges Student Financial Aid Office.
Also if a PLUS Loan was not listed on the student's UW Colleges Financial Aid Award Offer and the parent wishes to apply for the PLUS, the PLUS Parent Loan Worksheet (2008-2009 Academic Year/Summer 2009,2009-2010 Academic Year/Summer 2010) must be completed and submitted to the UW Colleges Student Financial Aid Office.
- The parent PLUS applicant will need a U.S. Department of Education PIN to complete the Online process (to electronically sign the application). This is not required, but it will expedite the application process. If the student filed the FAFSA online, chances are the parent does have a PIN. Visit the FSA PIN Registration website if the parent does not have a PIN.
- If you meet all of the conditions above, the parent may now click on the link below to apply for a Federal PLUS (parent) Loan Online.
This process includes two steps:
- the Preapproval Application (credit check), and
- completion of a PLUS Master Promissory Note (MPN). If the preapproval decision is negative, you will not be prompted to complete an MPN. If the preapproval decision is positive, the parent should proceed in completing the MPN as directed by the website. If the PLUS MPN is not completed, the loan cannot be processed.
**If you applied for a PLUS Loan within the last several years and thus have an active PLUS MPN for this student on file with UW Colleges' loan servicer (Great Lakes), you do not have to complete another PLUS MPN as long as the lender still is processing PLUS Loans. However, you are required to complete online the PLUS Preapproval Application annually as your credit may change. Failure to complete the Preapproval Application each academic year will result in new PLUS Loan awards not being processed.
Federal guidelines regulate the primary features of loan programs. However, many lenders offer incentives to borrowers, including those that come into play when loan repayment begins. When choosing a lender, the incentives that are most important to the parent borrower should be considered.
You will be required to select a lender when you complete your MPN. UW Colleges does not endorse any particular lender(s) and you my choose whichever lender you like. If you choose a lender that is not on the list, you will need to know its 6-digit lender code. If you choose a credit union as your lender, you must be a primary member of the credit union. However, to assist you, UW Colleges has compiled a lender list as shown below. The lenders on the list have demonstrated a commitment in providing effective service to students and parents, which results in smooth and timely processing of your Stafford loan. In addition, all lenders on our list meet the following criteria:
- Electronic Fund Transfer (EFT) capability
- Great Lakes Higher Education Corporation serves as guarantor
- Trained customer service staff available
- Offers at least one borrower benefit or incentive (front-end and/or back-end)
Apply for a Parent PLUS Loan and to access the UW Colleges Lender List website.