Lake Superior State University
Lake Superior State University
 
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Financial Aid Office

FEDERAL DIRECT PARENT PLUS LOAN - PROMISSORY NOTE

If this is your parent's first Plus Loan, the parent who is taking out the loan must complete the Master Promissory Note (MPN) at www.studentloans.gov.

Please allow 7 - 10 days for the processing of the MPN to be viewable on your Anchor Access account.

Disbursement

The approved loan (less fees) will disburse into the student's account after all steps are completed.  Please allow 10 days for processing.  Loans will be divided in half, with 50% of the loan disbursing at the beginning of the period and 50% at the mid-point.  For fall/spring loans, one half will disburse in the fall and one half will disburse in January.

Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible. The interest rate varies and is based on 91-day treasury bill rates. The interest rate for 2010-11 is 7.9 percent.

* NOTE: A four percent origination fee is deducted from each of two disbursements made in a school year, and an up-front interest rebate of 1.5 percent is added.

Repayment

For PLUS loans that are first disbursed on or after July 1, 2008, Parent PLUS borrowers have the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least a half time basis. Parent borrowers can call Borrower Services at 1-800-848-0979 to request an in-school deferment for their dependent child.  Parents can also download a Parent PLUS deferment form at www.dl.ed.gov. This should be done AFTER the first half of the loan has disbursed to the student's account.

Due to the processing time, loan requests can not be honored during the last two weeks of the semester. Please submit any requests for alternative or direct loans to the LSSU Financial Aid Office before the last two weeks of the semester.

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