PLUS (Parent or graduate) Loans

Policies and procedures for PLUS Loans.

Cardinal Stritch University adheres to the National Association of Student Financial Aid Administrators code of conduct.

Any federal student loans borrowed are submitted to the National Student Loan Data System (NSLDS) for required reporting purposes. This information is accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. The National Student Loan Data System (NSLDS) provides information on your federal loan amounts, outstanding balances, loan statuses and disbursements. You can access your loan information by going to NSLDS online.

Parent PLUS Loan

The parents of a dependent* undergraduate student can apply for a low-interest PLUS loan to help the student pay for education-related expenses. The PLUS loan is subject to credit approval. When a parent completes the PLUS request process, the Department of Education reviews your credit. The credit check results will be sent to Cardinal Stritch University and the Financial Aid Office will review your eligibility for the PLUS loan.

*The federal government determines dependency status when a student completes the Free Application for Federal Student Aid (FAFSA)

There are THREE STEPS to the Parent PLUS loan process.

  1. Complete a credit check athttp://studentloans.gov.
  2. If approved, complete a Parent PLUS Loan Master Promissory Note athttp://studentloans.gov.
  3. Fill out the PLUS Loan Request and Authorization Form and return to the Financial Aid Office.

Graduate PLUS Loan

Graduate students are eligible for the PLUS Loan as well.  It is recommended that you first explore your options for Stafford Loans (Subsidized and Unsubsidized). The PLUS loan is subject to credit approval. What a student completes the PLUS request process, the Department of Education reviews your credit.  The credit check results will be sent to Cardinal Stritch University and the Financial Aid Office will review your eligibility for the PLUS loan.

There are THREE STEPS to the Graduate PLUS loan process.

  1. Complete a credit check at http://studentloans.gov.
  2. If approved, complete a Graduate PLUS Loan Master Promissory Note at http://studentloans.gov.
  3. Fill out the Graduate PLUS Loan Request and Authorization Form and return to the Financial Aid Office.

Federal student and Parent loan changes

On March 30, 2010, President Obama signed into law the Health Care and Education Reconciliation Act of 2010 (HR 4872), a bill to eliminate the Federal Family Education Loan Program (FFELP) and have all federal student loans originated through the Department of Education’s William D. Ford Federal Direct Loan Program (Direct Loans), effective July 1, 2010.

The Direct Loan Program includes Stafford Loans (Subsidized and Unsubsidized) for students and PLUS Loans (parents of undergraduate students and graduate students).  In the Direct Loan program, the United States Department of Education acts as the lender. Previously, students’ FFELP loan funding was received from private lenders (banks or credit unions).

Students/parents will continue to have access to low interest, federally backed student loans in the Direct Loan Program. The Direct Loan Program will provide a streamlined process and stable source of funding for Stritch families. Borrowers will also benefit from up-front rebates and be assured that loans will never be sold.

You may have questions or concerns about the change and what this means for you, as a borrower. Additional information about the Direct Loan Programs can be found at: http://studentloans.gov.

We have also compiled a list of questions and answers you will find helpful.  If you have any additional questions, please contact us at finaid@stritch.edu or (414) 410-4048.

1.       Why the change to the Direct Loan Program?

  • Direct Loans are not impacted by changes in the economy.
  • Federal Direct Lending provides a stable source of student loans funding, because the funds are provided by the U.S. Treasury.
  • The shifting credit markets and changes in federal law have reduced the number of lenders offering loans through FFELP.

2.       Do students/parents need to complete a new Master Promissory Note (MPN)?

  • YES, all borrowers must sign a Direct Loan MPN to receive loans through the Direct Loan Program.

3.       How do I complete a Direct Loan MPN?

4.       What happens to the existing loans students/parents borrowed from other lenders in the FFEL program?

  • Any previous loans that were borrowed from another lender will be serviced by the lender/servicer (i.e., Great Lakes Higher Education, Wells Fargo).  Many loans were sold to the Department of Education, so pay close attention to any letters and mailings you may have or will receive.
  • After graduation, you have a choice to make individual payments to your lender (for FFELP loans) and to the Department of Education (for Direct Loans).  Or you can consolidate all loans into one payment with the Department of Education.
  • For more information on Direct Loan consolidation, please visit the Federal Direct Loan consolidation website at https://loanconsolidation.ed.gov/appentry/appindex.html

5.       If I completed entrance counseling prior to receiving my FFELP loans, do I have to complete entrance counseling for my Direct Loans?

  • NO, you will not be required to complete entrance counseling again.  Only new borrowers will be required to complete entrance counseling.  Entrance counseling provides students with their rights and responsibilities and may be completed at:http://studentloans.gov.

6.       Will the FFELP loans that I borrowed still be deferred now that Stritch is participating in the Direct Lending program?

  • As long as you are enrolled in school at least half time, your student loans will continue to be deferred. Stritch reports enrollment information to lenders monthly.