Federal Direct PLUS and Graduate PLUS Loan Process 2011-2012

Applications for Federal Direct PLUS and Graduate PLUS loans are processed online through the US Department of Education Student Loan web site.

  • The parent or graduate student borrower must sign in to the website using their Federal Student Aid PIN (the same PIN that was used to sign the student’s FAFSA) in order to apply.  If the borrower does not already have a PIN or has forgotten it, they can obtain a new one by following visiting www.pin.ed.gov.
  • Once signed in, the borrower must click on “Request a PLUS Loan” to begin. 

PLUS PROCESS CONSISTS OF FOUR EASY STEPS:
 
Step 1: Personal Information:  Personal information of the parent or graduate student borrower.

Step 2: Student & Loan Info:

  • Select 2011-2012 as the Award Year.
  • Parent-borrowers only (not graduate students), enter the information of the student for whom the loan is for.
  • Select “NEW YORK” as the School State and “SAINT JOHN’S UNIVERSITY” as the school name.
  • Enter a requested loan amount.
    • The borrower can choose to enter a specific amount they would like to borrow or to borrow the maximum amount for which they are eligible as determined by St. John’s University (this amount is indicated in your Financial Aid award letter). 
    • If the borrower later determines that they do not need the entire amount for which they applied, they may cancel or reduce an un-disbursed loan at any time and may cancel or reduce a disbursed loan within thirty days of the date of disbursement.  St. John’s Loan Change Form is available online at www.stjohns.edu/services/financial.
    • The amount the borrower chooses to apply for will not affect the result of the application. 
    • When choosing an amount, the borrower should borrow only what is really needed and remember that loans must be repaid.

Step 3: Review Application

Step 4: Credit Check & Submit:
Authorize the review of credit history and submit the application.

Additional Step for New GradPLUS Borrowers :
All new Direct Grad PLUS Loan borrowers must complete a separate Grad PLUS Entrance Interview at www.StudentLoans.gov.

When will the borrower be notified of the result of the application?

  • The borrower will be notified immediately of the result.
  • If approved, the borrower will be directed to complete a Master Promissory Note (MPN) if they have not previously completed a PLUS MPN.

What can the borrower do if PLUS loan is not approved?

  • If not approved, the borrower may choose not to pursue a Federal Direct PLUS Loan.  If the not approved borrower is the parent of an undergraduate student, that student may be eligible for additional unsubsidized Stafford Loan funds based on the result of the application.
  • If not approved, the borrower may elect to provide documentation of extenuating circumstances and appeal the decision.  In this case, the borrower must provide contact information and a representative of the Department of Education will contact the borrowerwith further instructions.
  • If not approved, the borrower can choose to obtain an endorser with a more favorable credit history to act as a co-signer.  The endorser must complete a process, similar to the original application, either online or through the mail.  The online process requires that the endorser have a Federal Student Aid PIN.  The not approved borrower will automatically be mailed a paper Endorser Package.  Both processes require that the endorser know the Loan Reference ID which will be provided to the not approved borrower via email or can be viewed by the not approved borrower when they sign in to www.StudentLoans.gov.

How will the student receive the loan funds?

  • Once an application has been approved and a MPN has been properly completed, the student will be given credit for the amount approved for disbursement less all applicable fees. 
  • The approved amount will automatically be split equally between the fall and spring semesters.
  • Funds will be disbursed to the student’s account at the beginning of each semester according to the disbursement schedule of St. John’s University.

What fees, if any, are associated with these loans?
For GradPLUS/PLUS loans, an origination fee of 4.0% will be assessed and an up-front rebate of 1.5% will automatically be awarded.  To keep this up-front rebate, the borrower must make their first twelve payments on time once entering repayment. The net disbursement will reflect these fees; therefore, the amount credited to the student’s account will be less than the loan amount. This fee is determined by the U.S. Department of Education.

Where can I learn about the various federal student loan programs?

For more information, please visit the following websites:

For more information on debt management please visit the following websites: