University of Vermont

Student Financial Services

William D. Ford Federal Direct PLUS Loan Program

Please click on the one of the following links to view information regarding the appropriate PLUS Loan Program for you:

Federal Direct Parent PLUS Loan Program

General Information about Parent PLUS Loans:

Federal Direct Parent PLUS Loans are intended for the parents of dependent (as determined on the FAFSA) students. One, or both, parents, if credit-approved, may borrow this loan on behalf of the student and it will be paid directly to the student's University account. The lender of this loan is the U.S. Department of Education. For repayment, the borrower will be assigned a loan servicer.

Parent PLUS Loan Terms

  • Interest Rate: 7.21%
  • Origination Fee for loans first disbursed before October 1 2014: 4.288%
  • Origination Fee for loans first disbursed on or after October 1 2014: 4.292%
  • Standard Repayment Terms: The standard repayment term is 10 years, and repayment begins 60 days after the loan has fully disbursed.
  • Deferment Options: Loan can be deferred while the student is enrolled at least half-time, and for 6 months after the student graduates or drops below half-time enrollment.
  • Click here to use a repayment calculator to determine the estimated monthly payment for your PLUS Loan.
  • For additional information regarding eligibility and repayment, please click here.
  • Click here for options if a Parent Plus Loan is denied.

*An origination fee is deducted from your loan disbursement. The origination fee is taken out before the loan disburses to UVM. For example, if you request a loan for $10,000, that disburses before October 1 2014, the 4.288% origination fee will be $428. Thus, the amount that will disburse to UVM is $9,572.

Steps for Borrowing a Parent PLUS Loan:

  1. Student (with parent) submits the FAFSA.
    • A valid FAFSA is required for a student in order for a parent to borrow a PLUS Loan on that student's behalf. For information about filing the FAFSA, please visit our financial aid page.
  2. Borrower completes PLUS Loan Request (application). The PLUS Loan Request is the online federal PLUS Loan application on www.studentloans.gov. The parent borrowing the loan needs to follow these steps to complete the Request:
  3. Please note that the credit decision will be shown to you on-screen after you complete the Request. Please allow up to several weeks for the UVM financial aid award to be updated to reflect the PLUS Loan.

    1. Gather the following information that is needed to complete the request (application):
      • Federal PIN. This is the PIN used by the parent to sign the FAFSA (not the student's PIN). To retrieve a forgotten PIN go to www.pin.ed.gov. If the parent borrowing the PLUS Loan did not sign the FAFSA and/or does not have a PIN, he/she will need to request a new one at www.pin.ed.gov.
      • Permanent address and mailing address
      • Telephone number and email address
      • Alien Registration Number (if parent is an eligible non-citizen)
      • Employer name and address
      • Student first, middle and last name
      • Student SSN, date of birth, address and telephone number
    2. Go to www.studentloans.gov and sign in using Federal PIN (see PIN information in step "a" above).
    3. Once signed in, click on “Request a Direct PLUS Loan” from the menu in the middle of the page or to the left of the page.
    4. Select “Parent PLUS” as the loan type and submit all requested information. The application is not completely submitted until the credit check result is received. To review information about how your credit will be reviewed and what is considered adverse credit for purposes of this application, please click here to visit the frequently asked questions section of studentloans.gov, and click the plus sign next to Credit Check.
      • If approved, your loan record will be sent to UVM. Please allow up to several weeks for the UVM financial aid award to be updated to reflect the PLUS Loan.
      • If denied, please click here for your options. Please note that the financial aid award will be updated to reflect that the Parent PLUS Loan was pursued. It will be listed as an accepted loan in the award. This does not mean that the loan has been credit approved.
  4. Borrower completes Master Promissory Note on www.studentloans.gov as follows:
  5. NOTE: This is necessary for parents borrowing their first Parent PLUS Loan at UVM or for parents who obtained an endorser on their previous Parent Plus Loan. A separate Promissory note is required for each student whom the loan is borrowed for.

    1. Gather the following information needed to complete the Master Promissory Note (MPN):
      • Permanent and mailing address; telephone number; email address
      • Alien Registration Number (if eligible non-citizen)
      • Employer name and address
      • Reference information (names, addresses, telephone numbers, and relationship to you) for two people with different U.S. addresses who have known you for at least 3 years. The student for whom the loan is being borrowered cannot be a reference.
      • Student first, middle and last name; SSN; date of birth; address; telephone number
    2. Sign into www.studentloans.gov using Federal PIN (see additional PIN information in step "a" of PLUS Loan Request section above).
    3. Once logged in, select the "Complete MPN" option under the Master Promissory Note heading in the menu at the left of the page, or in the center of the page.
    4. Complete all requested data and submit Master Promissory Note (MPN).
  6. Authorized Payer & Direct Deposit Sign Up
    • Authorized Payers: The student should set up the parent borrower as an Authorized Payer through their myUVM account. This will allow counselors in Student Financial Services to speak with the parent about not only their PLUS Loan, but also the entire financial aid package and student billing account. All Authorized Payers also receive copies of notices related to the billing statements. For more information about Authorized Payer access, click here.
    • Direct Deposit: In the PLUS Loan Request (on www.studentloans.gov), if the parent chooses to receive any refund of overpayment (instead of having those funds released to the student), the parent should set up a Direct Deposit account for that refund. This is done through the Authorized Payer account, accessed at www.uvm.edu/sfs/authorizedpayer. Refunds of overpayment from the PLUS Loan can be used for education related expenses, such as books, living expenses, and supplies.

Federal Direct Graduate PLUS Loan Program

General Information about Graduate PLUS Loans:

Federal Direct Graduate PLUS Loans are intended for graduate (including medical) students to assist with their education expenses. This loan requires that the student be credit-approved on their own, or with an endorser. When approved, the loan will pay directly to the student's University account. The lender of this loan is the U.S. Department of Education. For repayment, the student will be assigned a loan servicer.

Graduate PLUS Loan Terms

  • Interest Rate: 7.21%
  • Origination Fee for loans first disbursed before October 1 2014: 4.288%
  • Origination Fee for loans first disbursed on or after October 1 2014: 4.292%
  • Grace Period: 6 months
  • Standard Repayment Terms: 10 years
  • Additional Information: For additional information regarding eligibility and repayment, please click here.
  • Click here to use a repayment calculator to determine the estimated monthly payment for your PLUS Loan.

*An origination fee is deducted from your loan disbursement. The origination fee is taken out before the loan disburses to UVM. For example, if you request a loan for $10,000, that disburses before October 1 2014, the 4.288% origination fee will be $428 Thus, the amount that will disburse to UVM is $9,572.

Steps for Borrowing a Graduate PLUS Loan:

All steps listed here must be completed for your Graduate PLUS Loan to be processed and disburse to your account. The loan will disburse no earlier than 10 days before classes start.

  1. Submit the FAFSA, if you have not done this already. You must have a valid FAFSA on file in order to borrow a Graduate PLUS Loan. For information about filing the FAFSA, please visit our financial aid page.
  2. Accept the loan offer in your online UVM financial aid award, once this option is available (early June).
    • You will be unable to accept (or decline) the loans offered in your financial aid award until early June. Email notification will be sent when the accept/decline options are available.
    • Access your award through the myUVM portal. Click on "See Your Award" from the Student Financial Services menu, then select the appropriate award year. Follow the instructions given to accept/decline your offered aid.
  3. Complete the Graduate PLUS Credit Authorization Form
    • After accepting the Graduate PLUS Loan in your award, a new requirement will post to your account for the Graduate PLUS Credit Authorization Form. You will need to sign and submit this form to Student Financial Services.
  4. Complete a Master Promissory Note for the loan at www.studentloans.gov.
    • You will need your Federal PIN to login on this site. If you have misplaced or forgotten the PIN, go to www.pin.ed.gov to request a duplicate or to apply for a new PIN.
    • Once logged in to www.studentloans.gov, do the following:
      • Verity your personal information. There will be a box with personal information (name, social security, date of birth and blank email fields). Review your information and enter and confirm your email address. If you would not like to receive electronic correspondence, uncheck that checkbox. Click "Update" when finished.
      • Click on "Complete MPN" under the Master Promissory Note heading, or click on "Complete a Master Promissory Note" in the middle of the page and complete the Master Promissory Note. Be sure to advance through all pages and submit at the end.

Last modified August 06 2014 12:51 PM

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