Federal Direct Graduate PLUS Loan Process 2011-2012

The U.S. Department of Education student loan website, www.StudentLoans.gov , will be accepting online applications for Federal Direct Graduate PLUS Loans for the 2011-2012 school year.

  • The 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 the link to the PIN site.
     
  • Once signed in, the borrower must click on “Start PLUS Application Process” to begin. 

PLUS PROCESS CONSISTS OF FOUR EASY STEPS:
 
Step 1: Personal Information

  • The site will ask for certain personal information about the borrower, much of which the site will have already entered based on the PIN used when signing in.

Step 2: Student & Loan Info:

  • Select 2011-2012 as the Award Year.
  • Select “NEW YORK” as the School State and “SAINT JOHN’S UNIVERSITY” as the school name.
    (The borrower will next have to indicate which school(s) they would like to be notified of the result of the   application.  The borrower may choose up to three schools.)
  • 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.
    • 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:

  • The borrower will have an opportunity to review the information listed on the application and make any necessary corrections.

Step 4: Credit Check & Submit:

  • Once the borrower has reviewed the application and is satisfied that all of the information listed is correct, they must authorize the Department of Education to review their credit history and then submit the application.
  • An additional step for first time Grad PLUS 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?

  • Once the borrower submits the application, they 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? 

  • Option 1: If not approved, the borrower may choose not to pursue a Federal Direct PLUS Loan.
  •  Option 2 : 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 borrower with further instructions.
  • Option 3: 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 is the interest rate on the Graduare PLUS Loan for the 2011-2012 academic year?

  • The current interest rate for the Graduare PLUS loan is 7.9%.