Ford Federal Direct PLUS Loan

Parents of a dependent student may apply for a Ford Federal Direct Parent Loan for Undergraduate Students (PLUS) Loan, a non-need-based program that allows a parent to borrow an amount up to the cost of attendance minus other financial aid awarded. The dependent student must have a completed Free Application for Federal Student Aid (FAFSA) on file at UMM to be eligible.

Parents wishing to borrow from the Ford Federal Direct PLUS Loan program should:

• Complete the PLUS Active confirmation form for the appropriate academic year (Mail or fax the form to the Financial Aid Office).

2009-2010 PLUS Active Confirmation Form

• Complete the PLUS Master Promissory note (contact the Financial Aid Office if you would like to request a paper copy of the PLUS Master Promissory note).

PLUS Master Promissory Note (MPN)

The interest rate is a fixed rate of 7.9%. Interest begins to accumulate on the date of the first loan disbursement.

A 4% origination fee is deducted from each disbursement. A 1.5% rebate is currently added back to your disbursement.

Repayment begins after the loan is fully disbursed, with the first payment due within 60 days after the final loan disbursement. PLUS loan deferments may be available if eligibility criteria is met. Access to deferment forms and criteria are available at the Direct Loan Servicing Center.

To be eligible for a Direct PLUS Loan:

• You must be the natural parent, adoptive parent, or legal guardian of the child for who you are borrowing a Direct PLUS Loan. In certain circumstances, a stepparent is also eligible to borrow.
• You must be a U.S. citizen, U.S. national, or permanent resident of the United States.
• You must not be in default on a federal education loan or owe an overpayment on a federal education grant.
• You must not have an adverse credit history.
• Your child must be an eligible dependent student who is enrolled in a postsecondary school.