University of South Florida

USF Financial Aid will begin processing Federal PLUS loans June 1, 2008 for fall 2008, spring 2009 and summer 2009.

PLUS loans help parents of dependent undergraduate students pay educational expenses. Parents can borrow up to the difference between USF’s estimated cost of attendance, and other aid or resources expected to be received. PLUS loans disbursed on or after July 1, 2008 will have a fixed interest rate of 8.5%.

Benefits

• Convenient online application with instant results

• Electronic signatures for Master Promissory Notes

• Varying repayment incentives, dependent on lender

• Flexible repayment plans

• PLUS loan funds at USF are received electronically and disbursed to the USF student account

Eligibility

A parent applying for a Federal PLUS must be the natural, adoptive or step-parent of a dependent undergraduate student. Parents must also have an acceptable credit history, or be able to apply with an eligible co-signer.

Students must:

• Complete the Free Application for Federal Student Aid (FAFSA);

• Complete the verification review process, if required;

• Be enrolled at least half-time in an eligible program of study;

• Not be in default on a federal student loan;

• Be maintaining Satisfactory Academic Progress for Financial Aid purposes; and,

• Be a US Citizen, or an eligible non-citizen.

When to Apply

A credit review is required by lenders as part of the PLUS application process. Do not apply for a PLUS more than 90 days prior to the start of the term. The credit review is valid for a period of 90-120 days only, during which a Master Promissory Note (MPN) must be activated (check with your lender for their policy).

USF does not certify loans until a month before the start of the semester. If we certify your loan after the credit review expires, your lender is required to do another. A new MPN may also be required.

USF Recommended Lenders

Lenders recommended by USF have been successful in using USF’s electronic process, allowing us to process and disburse the loan without problems that cause delays.
 You may choose a lender other than those listed on our web site provided they participate in the PLUS loan program and they must process electronic applications.

The PLUS Process at USF

Allow several weeks for the entire process. Due to the large volume of applications we receive, the University of South Florida (USF) processes all loans, including PLUS loans, electronically. The process is simple, when you follow the steps:

1. Complete a Free Application for Federal Student Aid (FAFSA), if you have not already done so. Be sure to include USF’s school code, #001537, so we can receive the results electronically. Although these loans are not need-based, a FAFSA is required to have a Federal PLUS processed at USF. Please note that a new FAFSA is required each academic year.

2. Apply online for pre-approval with a lender chosen from our Recommended PLUS Lender List for a fast response on your preliminary eligibility. Your lender will send us a pre-approval decision electronically. Please do not submit paper copies of the pre-approval decision. We process from electronic pre-approvals provided to us by the lenders only.

3. If approved, complete a PLUS Master Promissory Note (MPN) with your lender. Check to see if your lender has an electronic MPN that makes the process easier. If you don’t complete an electronic MPN, your lender should send you a paper one. If you complete a paper MPN, be sure to return it to your lender, do not return it to USF.

4. Upon receipt of your pre-approval decision and the processed FAFSA results, we will determine final eligibility.

5. If you are not approved, your lender will send us a denial notice, at which time, we will automatically offer the student an additional unsubsidized Federal Stafford loan, as allowed by regulations.

6. We electronically transmit the loan certification to your lender starting one month before the start of a semester.

Disbursement Process

• When the loan is scheduled to disburse, your lender will send the funds to USF electronically.

• The funds will disburse through the USF student account.

• After tuition and other charges on the account are paid, any remaining balance will be issued to the student via eDeposit*, or a check will be mailed to the student’s local mailing address (as listed in OASIS).

At USF, available financial aid is disbursed after the first week of classes each term. To cancel or reduce the loan amount, parent borrowers must notify the lender prior to disbursement.

*If you have not already done so, login to OASIS and sign up for eDeposit, it speeds up the process for receiving your funds.