|
|
Undergraduate PLUS Loans
The Federal PLUS Loan is an education loan to help parents with the cost of a dependent student’s education. The loan limit for a PLUS Loan is based on the student’s cost of attendance minus other aid. KVCC participates in the Federal Family Educational Loan Program (FFEL). PLUS Loans through the FFEL program are funded by private lenders.
We provide a list of available Federal PLUS Loan lenders for your reference; however we will process any eligible Federal PLUS Loan lender. If you want to use a lender not on this list please call the KVCC financial aid office at 269-488-4340.
Who can borrow a PLUS Loan? - The parent of a dependent undergraduate student or the step-parent of an undergraduate student if that step-parent’s information was required on the dependent student’s FAFSA.
Eligibility Criteria for Parent and Student - Be an eligible United States citizen or eligible noncitizen - Not be in default on a federal student loan - Not owe a refund on a federal education grant - Have a good credit history or explain extenuating circumstances (parent only)
Important Information- The interest rate on a PLUS Loan is fixed at 8.5%. - Your lender must issue your PLUS Loan proceeds in two disbursements. The second loan disbursement will not be issued until the mid-point of the loan period. - The funds from your PLUS Loan will be disbursed to KVCC via Electronic Funds Transfer (EFT). The funds will be placed on the student account and any credit balance will be issued to the student. - The borrower (parent) can request in writing that balance funds, after tuition and fees have been applied to student’s account, be made to the parent. - Your first loan repayment is due 60 days after the final disbursement. - Your loan repayment will be based on 10 years. (Your lender is required to offer a variety of payment options.)
Steps to Apply - Student and parent must complete the Free Application for Federal Student Aid (FAFSA). FAFSA applications are available in the Financial Aid Office or on-line at www.fafsa.ed.gov. - Student is required to complete the Pre-Loan Certification Form. (KVCC will accept faxed copies. Our fax number is 269-488-4120.) Pre-Loan Certification Form (Make 2 copies, sign and return one to the financial aid office and keep a copy for your records) 53 Kb (Requires Acrobat Reader) - Borrower (parent) must complete the PLUS Loan pre-application: The pre-application is an on-line credit approval. Your lender of choice must pre-approve the PLUS Loan before KVCC can certify eligibility.
Processing flow via the Web - Once credit is approved for the PLUS Loan pre-application, your lender of choice, will electronically notify KVCC of the approval and the dollar amount you are requesting. - The KVCC Financial Aid Office will certify the amount of your eligibility for the PLUS Loan. Eligibility is based on your cost of attendance minus other financial aid and your request. The loan will be certified for the lesser of the two. - If this is your first PLUS Loan, your lender will notify you about completion of the PLUS Loan Master Promissory Note (MPN) via regular mail. - Once the PLUS Loan MPN is completed, KVCC will receive the funds via EFT from your lender on the required disbursement dates. Most federal loans at KVCC will be delivered in two disbursements. The first at the beginning of the loan period in time for the initial balance check date and the second at the mid point of the loan period. - If the student is still enrolled at least half-time (6 credits) and does not have a balance owed to KVCC, per the terms and conditions of your PLUS Loan Master Promissory Note, the PLUS Loan proceeds will be applied directly to your dependent student’s account. Any balance funds will be issued to the student, not the parent borrower. The borrower (parent) may request in writing that balance funds, after tuition and fees have been applied to student’s account, be delivered to the parent.
Paper applications are available in the financial aid office. Please call 269-488-4340 if you would like to have one mailed. |
