Federal PLUS Loan for Undergraduate Students
To borrow the PLUS Loan, please read all the information contained on this page, complete and submit the PLUS Loan Activation Form. You may submit the PLUS Loan Activation Form in person to Student Financial Aid and Scholarships, 3rd floor, Fitzgerald Student Services Bldg., via U.S. Mail to Mailstop 0076, Reno, NV 89557 or via fax (775) 784-1025. Processing instructions are listed at the bottom of the page.
WHAT ARE THE BORROWING REQUIREMENTS?
Parents are required to pass a credit check and also meet some of the general eligibility requirements for federal financial aid. For example, parents must meet citizenship requirements and may not be in default or owe a refund to any financial aid program. The student must also be eligible for aid, including Satisfactory Academic Progress requirements.
WHAT IF I AM DENIED THE PLUS LOAN?
If you are denied a PLUS Loan, our office must receive a copy of the denial notification from the lender in order to offer an Unsubsidized Stafford Loan to the student. In addition, the student must request the Unsubsidized Stafford Loan by completing a Stafford Loan Activation Form specifically requesting an Unsubsidized Stafford Loan.
HOW MUCH CAN I BORROW?
The yearly maximum on a PLUS Loan is equal to the student budget minus other financial aid/scholarships. For example, if the student budget (tuition, fees, books and supplies, room and board) is $20,500 and the student was offered $8,000 in other financial aid/scholarships, the parent could borrow up to $12,500. The Offer Letter identifies the student budget and all available financial aid/scholarships. The student can view the most recent Offer Letter via ePAWS at www.unr.edu, under “Fin. Aid Offer”.
WHAT’S THE INTEREST RATE ON PLUS LOANS?
As of July 1, 2006, the interest rate on the PLUS Loan is fixed at 8.5%. Interest is charged from the date the first disbursement is made until the loan is fully repaid.
ARE THERE LOAN FEES?
Yes, you may pay a fee of up to 4% of the loan amount. This fee is deducted proportionately each time a loan disbursement is made. A portion of this fee goes to the federal government to help reduce the cost of the loans.
HOW ARE LOAN FUNDS DISBURSED?
If approved, the lender electronically disburses funds to the University. Half of the total loan total minus fees is disbursed each semester. The funds are used to pay all outstanding obligations to the University. Funds remaining after all University charges are paid are made payable to the student through direct deposit to a checking account or by check mailed from the Cashier’s Office. Students may change their mailing address via ePAWS.
CAN I CANCEL MY PLUS LOAN AFTER I APPLY?
Yes, our office notifies the student in writing whenever funds credit the student’s account. You may cancel all or a portion of the loan in writing within 14 days after the date of the notice. If you cancel the loan, tuition, fees, and other charges must be paid by the semester fee payment deadline or arrangements made with the Cashier’s Office for a deferred payment plan. If you receive PLUS Loan funds directly from the lender by check, you may refuse the funds by not endorsing the check and returning it directly to the lender.
WHEN DOES REPAYMENT BEGIN?
Repayment begins within 60 days after the 2nd disbursement for the academic year. There is no grace period, so interest begins to accumulate at the time the first disbursement is made. The parent borrower must begin repaying both principal and interest while the student is in school. Borrowers have the option to contact their lender to inquire about forbearance while in school.
HOW TO SELECT A LENDER
In the table below, our office lists a selection of seven lenders. These lenders were selected based on customer service, borrower benefits and the lenders’ history with the University. Each year, we evaluate leading lenders in the industry and select the lenders after lengthy discussion and comparison. Each of these lenders has some benefits in common such as on-line Master Promissory Notes, e-signature, and free on-line access to account information. The table lists some of their unique benefits to help you make your choice.
One factor to consider when choosing a lender is your predicted repayment behavior. A few things to consider are whether or not you’ll use the auto debit (ACH) which is a factor for some benefits; if you will make all your payments on-time; when you want to earn the benefits; would you like all the benefits sooner rather than later; are you willing to trade a smaller benefit earned sooner for a larger benefit earned later – these are all questions to ask yourself before deciding on a lender.
*****All borrower benefits are subject to change*****
Before you choose a lender, you are advised to research the lender and specifically ask the lender for a full disclosure of all terms and conditions of the benefits. Selecting a lender is your choice; you are not limited to only the lenders’ on the selection of lenders list.
Other Lenders: If you are a first-time borrower and wish to borrow from a lender or credit union not listed, you must submit 1) a completed paper copy of PLUS Master Promissory Note from that lender; 2) the lender code; 3) the guarantor; 4) the guarantor code; 5) the address where to mail the certification and PLUS MPN and 6) the completed PLUS LAF to our office. We will attempt to process the loan electronically, but if that fails we will process the loan manually.
Please note: If you borrowed previously with
Collegiate Solutions, CLC, Student Loan Xpress, or any other lender no longer
processing federal Stafford Loans then you will need to select another lender.
You may want to select a lender with the same servicer
as your previous lender for ease at repayment.
| LENDER |
BENEFITS |
Bank of America
Student Loan Originations
P.O. Box 7987
Madison, WI 53707-7987
1.800.344.8382
Website
Servicer: ACS
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- 3% Origination fee (1% default fee paid by guarantor)
- 0.25% Interest rate reduction for Bank of America checking or savings account customers.
- Rate reduction applies for the life of the loan-once earned it’s yours.
- For your convenience Bank of America verifies checking or savings account. You do not need to provide documentation.
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Chase Education Finance
1 E. Ohio Street, IN1-0104
Indianapolis, IN 46277
1.800.487.4404
Website
Servicer: Chase
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- 3% Origination fee (1% default fee paid by guarantor)
- 0.25% Automatic interest rate reduction at repayment.
- Pre-approval in seconds online or over the phone.
- Loans originated and serviced by Chase.
|
Citibank
Application Processing
P.O. Box 6128
Sioux Falls, SD 57117-6128
1.800.967.2400
Website
Servicer: Citibank
|
- 3% Origination fee (1% default fee paid by guarantor)
- 0.25% Interest rate reduction when a borrower signs up for the auto-debit payment program and agrees only to receive statements electronically.
- Life of the loan servicing at Citibank.
|
Key Bank
P.O. Box 55057
Boston, MA 02205-8029
1.800.539.5363
Website
Servicer: Great Lakes
|
- 4% Origination fee
- 0.25% Interest rate reduction for direct debit payment.
- Dedicated Borrower Support Help Line: 800-KEY-LEND.
- Eligible for the BorrowSmart experience, reduce your total debt by borrowing less:
http://www.key.com/unrplus
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SunTrust Education Loans
c/o ACS Loan Origination
P.O. Box 92251
Los Angeles, CA 90009-2251
1.800.552.3006
Website
Servicer: ACS
|
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Wachovia Education Finance
P.O. Box 13667
Sacramento, CA 95853-3667
1.800.338.2243
Website
Servicer: ACS
|
- 3% Origination fee (1% default fee paid by guarantor)
- 0.25% Interest rate reduction using auto debit.
- Benefit Rehabilitation opportunity.
|
Wells Fargo Bank
301 E. 58th Street North
Sioux Falls, SD 57104
Website
Servicer: Wells Fargo
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- 3% Origination fee (1% default fee paid by guarantor)
- Make loan payments at any Wells Fargo branch.
- Does not sell the loans-Life of loan servicing.
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**All borrower benefits are subject to change.
PROCESSING INSTRUCTIONS
- Select a lender. Selecting a lender is your choice; you are not limited to only the lenders on our list.
- Decide how much you wish to borrow. Refer back to the section on “How Much Can I Borrow?” If you want to borrow a lesser amount than the maximum, write in the amount on the PLUS Loan Activation Form.
- Complete and submit the PLUS Loan Activation Form to our office. We recommend current and prior borrowers remain with their most recent lender/servicer to ensure ease of repayment.
- First-time PLUS Loan borrowers at this University can complete the PLUS Master Promissory Note (MPN) on the Internet. The MPN is the legal paperwork between the borrower and the lender. Previous PLUS Loan borrowers at this University do not need to complete a new MPN.
- If you did not complete the MPN on the Internet, you will receive a pre-printed PLUS MPN from your lender. Complete the reference section and any other requested information and return it promptly.
- Your lender conducts a credit check with a national credit bureau before approving the loan. If the loan is approved, the parent borrower receives a “Notice of Guarantee” (NOG) from the lender which identifies approximate dates for the electronic disbursement of funds from the lender to the University. Typically, funds are credited to the University’s bank account within three working days after the NOG date. If the lender denies the loan, the student should contact our office for other borrowing options.
- When the University receives funds, our office confirms the student’s eligibility for aid, including Satisfactory Academic Progress. Our office also checks enrollment status (full time=12 or more undergraduate credits; 3/4 time=9-11 credits; or 1/2 time= 6-8 credits). If the student is still eligible, the funds are credited to the student’s account and all outstanding financial obligations to the University are paid (fees, tuition, housing, etc).
- Our office notifies the student in writing each time a loan disbursement is made. The notification details the fund program(s) and amount(s) disbursed into the student’s account.
- If the borrower marks “yes” on the Authorization question on the Loan Activation Form (LAF), the loan funds will be made payable to the University to pay mandatory charges. Then if any funds remain after all University charges are paid-in-full, the residual funds are made payable to the student. Students may request the funds to be direct deposited to a checking account. Information about setting up a direct deposit is available from the Cashier’s Office. If direct deposit is not arranged, the funds will be mailed to the address listed on ePAWS. Students can change their mailing address via ePAWS at www.unr.edu.
If the borrower marks “no” on the Authorization question on the LAF, the loans funds will be made payable to the parent. The student/parent would be fully responsible for ensuring the University is paid by the due date. Late fees would apply to late payments.
- It is the student’s responsibility to read The Guide and maintain Satisfactory Academic Progress standards. They are posted at www.finaid.unr.edu.
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