University of Southern Maine

Student Financial Aid

PLUS Loans

FEDERAL FAMILY EDUCATIONAL LOAN PROGRAM (FFELP)

Through the FFELP, private lenders provide funds to students and their parents that are guaranteed by the federal government.  Student loans are borrowed money that must be repaid, with interest.  FFELP loans include Stafford Loans (subsidized and unsubsidized) and PLUS loans.  The borrower repays these loans to the bank or private lender that made the loan.  For both Stafford and PLUS loans, the student must:

• be enrolled at least 6 credits per semester;
• be admitted to a degree program;
• not be in default on a federal student loan;
• be a U.S. citizen or eligible non-citizen;
• have a valid Social Security number;
• be registered with Selective Service, if required; and
• maintain satisfactory academic progress

FEDERAL PLUS LOANS

Graduate students, law students and parents of dependent undergraduate students may borrow a PLUS loan to help cover the student’s college costs.  A student’s dependency status and cost of education are determined using US Department of Education criteria.

PLUS loan borrowers must not have an adverse credit history.  (If the parent of a dependent student is denied because of adverse credit, the student may be eligible to borrow additional unsubsidized Stafford Loan.  Contact the Financial Aid Office for additional details.)  PLUS Loan borrowers must be U.S. citizens or eligible non-citizens and not be in default on a federal student loan.

The interest rate is fixed at 8.5%. The first payment on these loans is generally due within 60 days after the final loan disbursement for the loan period.  Graduate PLUS loan borrowers, and now parent PLUS loan borrowers, may defer payments on a PLUS loan until six months after the date the student ceases to be enrolled in 6 credit hours. You must pay accruing interest monthly or quarterly, or allow interest to be capitalized quarterly.  We also recommend visiting the Loan Payment Calculator web site to help you determine your payments based on your PLUS Loan balance.  

To print a PLUS Loan application, click below:  

2009-2010 USM PLUS Loan application (used for Summer 2009, Fall 2009 and Spring 2010)

PLUS LOAN LIMITS

Maximum PLUS Loan eligibility varies depending on the cost of education and other aid awarded to the student. 

PLUS LOAN APPLICATION PROCESS FOR 2009-2010

Step 1:  Graduate and law students applying for a PLUS loan must complete a FAFSA and submit any other information (tax    returns and other documents) that may be requested by the Financial Aid Office.  To ensure that the student receives the maximum financial aid s/he is eligible for, dependent students are encouraged to submit a FAFSA before his/her parents apply for a PLUS loan. 

Step 2:  When you receive the notification of your financial aid eligibility (this is the only notification you will receive), we strongly recommend that you visit MaineStreet self-service at https://mainestreet.maine.edu on a regular basis.  Please be advised that you may visit the ACCEPT YOUR AWARD (tab) once and once only.  Follow the instructions carefully to apply for the Federal Stafford Loan(s).  Any changes after that will need to be made directly with the Student Financial Aid Office. 

Step 3:  First time Graduate PLUS loan borrowers are required to complete a Graduate PLUS Loan Entrance Counseling session.  The Entrance Counseling session must be completed online and prior to your loan application being certified.  The entrance counseling session explains your rights and responsibilities as a Graduate PLUS Loan borrower. 

Step 4:  To apply for the Federal PLUS Loan, complete the USM PLUS Loan request and return it to the Financial Aid Office. 

Step 5:  After the Financial Aid Office certifies PLUS loan eligibility, the guaranty agency will conduct a credit check for the borrower.  If approved, the borrower will be required to sign a Promissory Note either electronically or by paper. 

Step 6:  PLUS Loan funds (less an origination fee, if your lender charges one) will be sent to USM by Electronic Funds Transfer (EFT).  And, assuming the student continues to meet all eligibility criteria, will be credited to the student’s bill.  If the lender uses paper checks instead of EFT, the Student Billing Office will contact the borrower after the check is received.  The loan will be divided between the number of semesters you are enrolled for the academic year.  Visit the Student Billing web site or call 780-5200 for details about outstanding balances and credit refunds.

PLUS LOAN REPAYMENT

What may your loan payment look like?  
Use the following loan chart as a guide:

Visit the Loan Payment Calculator web site to help you determine 
your future payments based on your PLUS Loan balance.  

LOAN DEFAULT

Students who are currently in default cannot receive any federal student aid and the default will be reported to credit agencies, affecting your ability to apply for any other forms of credit.  Contact the US Department of Education at 1-800-4FEDAID if you are in default or if you have questions regarding the status of past loans.

HELPFUL LINKS  

Student Aid on the Web – For information about federal student aid from the U.S. Department of Education, including loans

National Student Loan Data System – the U.S. Department of Education's central database for student aid.  NSLDS Student Access provides a centralized, integrated view of Title IV loans and Pell grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or Pell grant data.

FinAid.org – provides comprehensive information about financial aid, including tools to calculate the cost of borrowing.

06/11/2009