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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.
 NEW
FOR
2008-2009
First-time
graduate PLUS loan borrowers must complete an Entrance
Counseling session to review their rights and responsibilities.The Entrance Counseling session can be completed online
at www.usm.maine.edu/fin/gplusentint.htm.
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To
print a PLUS Loan application, click below:
2008-2009
USM PLUS Loan application
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
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 notification of your financial aid
eligibility, complete and return the “Stafford Loan
Application/Information Update” to the Financial Aid Office
and follow the instructions for applying for a Stafford Loan.
Step
3:
Complete the USM PLUS Loan Request and return it to the
Financial Aid Office.
Step
4: First time Graduate PLUS loan borrowers are required to
complete an Entrance
Counseling session. The
Entrance Counseling session may be completed online. The
entrance counseling session explains your rights and
responsibilities as a Graduate PLUS Loan borrower.
Step
5:
After the Financial Aid Office certifies PLUS loan
eligibility, the guaranty agency will conduct a credit check for
the borrower and, if approved, mail an application/promissory
note to the borrower to complete and sign.
Step
6:
PLUS Loan funds (less an origination fee, if your lender
charges one) will be sent to USM by electronic funds transfer
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 evenly 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:
|
Amount of Loan Borrowed
|
Number of Payments |
Monthly
Payment Amounts |
| 6% |
7% |
8% |
9% |
| $5,500 |
60 |
$106 |
$109 |
$112 |
$114 |
| $10,000 |
60 |
$193 |
$198 |
$203 |
$208 |
| |
|
|
|
|
|
| $10,000 |
60 |
$193 |
$198 |
$203 |
$208 |
| $10,000 |
120 |
$111 |
$115 |
$121 |
$125 |
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
2008-2009
USM PLUS Loan application
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.
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