Parents who are first-time borrowers of the Federal Direct PLUS Loan must complete an electronic Master Promissory Note (MPN) to receive the funds. The MPN can be completed on-line at https://studentloans.gov. In most cases, the parent will be required to complete the MPN only once during their student's years in college. If the parent borrower is ineligible because of an adverse credit history, the parent may obtain an endorser for the loan. If an endorser is required, the Office of Student Financial Aid (OSFA) must have a new MPN completed for each loan.
Because the Master Promissory Note allows parents to borrow for up to 10 years using one note, the UI Office of Student Financial Aid requires the parent borrower to complete the Request for PLUS (Parent) Loan form each session (i.e., fall, spring, summer, winter). The parent must confirm who wants to borrow and the amount they wish to borrow.
- Only one parent can borrow each loan.
- In cases of divorce or cases where multiple parents wish to borrow, each parent must complete a separate Request for Parent PLUS Loan form and each must complete a separate Master Promissory Note. The maximum that can be borrowed between all parents is the amount listed on the student's award notification.
- Complete the Request for Parent PLUS Loan form as early as possible after receiving the award notification. A separate request must be completed for each session (i.e., fall, spring, winter, summer)
- Review the request form and the MPN for completeness. Items left blank or unreadable will cause a delay the processing of your loan.
- Sign and date the bottom of the MPN only once. Any alterations in the signature block will invalidate the MPN.
- If the parent PLUS loan is denied due to adverse credit and the parent is obtaining an endorser, the parent must complete a separate MPN for that loan. This additional MPN can be completed online at https://studentloans.gov.
Denied PLUS Loans
If a parent is denied the parent PLUS loan after the credit check is performed by the Department of Education, they will be sent a notice explaining the reason for the credit denial and given information for contacting the credit bureau. After the parent has reviewed their credit report, there are several options:
- Parents can contact Direct Loan Applicant Services at 800-557-7394 and explain their financial situation. In some cases, the Direct Loan Servicer is able to do a credit over-ride due to the circumstances the parent explains. This allows the original PLUS loan to be processed and disbursed.
- Parents can obtain an endorser on the loan. This allows the original PLUS loan to be processed and disbursed.
- Students can request to receive an additional amount of Unsubsidized Stafford Loan ($4,000 for freshmen and sophomores and $5,000 for juniors and above). In this case, the original PLUS loan must be cancelled to allow for the additional Unsubsidized Stafford Loan borrowing. This should be a last resort used only after the family has exhausted the above two options.