Plus loans are offered to parents to assist with their student’s costs when the student does not have enough other types of financial aid to meet the university’s cost of attendance.
PLUS loans are unsubsidized which means interest accrues while the student is in school. The PLUS loan begins repayment 60 days after the last disbursement of loan funds is made each year (the award is normally for two semesters, half the amount of the loan is disbursed in fall and the other half in spring). An origination fee is assessed by the federal government at the time of disbursement.
If a dependent student’s cost of attendance cannot be met with other awards, the parent is eligible to apply for a PLUS loan. Students must be enrolled at least half-time to be eligible for a PLUS loan.
UNCW has compiled a list of lenders from which you may have your loan processed. These lenders are recommended based on the quality of products and services they provide to UNCW students and families. We have carefully considered these lenders in order to provide you with the best possible benefits and servicing options. If you wish to use a lender not on this list, you have the right to do so. Once you have reviewed this information and selected your lender, follow these steps to complete these PLUS loan process.
The PLUS loan application process consists of:
- PLUS Master Promissory Note (MPN): The parent borrower must complete the PLUS MPN with the chosen lender. This is a legally binding form that is an agreement between the borrower and the lender. The PLUS MPN is valid for all PLUS loans borrowed through one lender for one student for a period of 10 years. To complete the PLUS MPN, select your lender in the Parent PLUS section and follow the “Apply Now” process set up by your lender. If you prefer a paper copy of the MPN, contact your lender.
- PLUS Application: A PLUS Loan Application form must be submitted. This form gives the Financial Aid Office the information needed to submit the application to the lender. On this form you identify your lender and indicate the requested loan amount. Be sure the lender you select on the PLUS Application is the same as the lender selected when you completed the MPN. Also the parent borrower must be the same on the PLUS application and the MPN.
- Credit Check: The lender performs a credit check on the parent borrower. If credit is approved, the application process continues and UNCW certifies the loan. If credit is denied, the parent borrower has the option to appeal the decision or attain an endorser. If the parent borrower does not wish to appeal or secure an endorser for the loan, the student is eligible for an additional unsubsidized loan. The parent borrower and/or student must complete the PLUS Loan Origination Rejection Form to notify UNCW of the family’s intentions regarding the loan process should the credit decision be a denial. Additional unsubsidized loan limits for students whose parent loans have been denied are $4,000 for freshman and sophomores and $5,000 for juniors and seniors.
Monthly Payments
All loans have one common factor which distinguishes them from the other forms of aid; they must be repaid. To determine your monthly payments considering various circumstances, we suggest you use a Monthly Repayment Calculator. We encourage students and parents to make informed decisions about borrowing – having an estimate of what your payments will be should help in budgeting for loan payments.
Reporting to Credit Bureaus
Federal law requires lenders to report loan information and the subsequent monthly payment information to credit bureaus. There has been some concern about what a credit bureau can do with a borrower’s information. A borrower has the right to prohibit a credit bureau from using information in the borrower’s credit record in connection with any credit or insurance transaction not initiated by the borrower. The borrower may exercise this right by calling 888-567-8688, option 2.
