Application Process - PLUS Loans

What is a Federal Parent Loan for Undergraduate Students (PLUS)?

Parents of dependent undergraduate students may borrow Federal PLUS Loans. PLUS loan applications must be processed through a private lender who will approve or deny the application based on a review of the parent borrower's credit history. PLUS loans are typically cheaper than private student loans because PLUS loan borrowing terms are regulated by the U.S. Department of Education.

Parents may borrow for one academic year at a time. The borrowing limit per year is the student's Projected Cost of Education for the academic year minus all other financial aid the student will receive (including other student or parent loans).

See description of PLUS Loan Program.

PLUS Loan Application Process

1. Complete a "PLUS Loan Request Form" and submit it to the Office of Student Financial Aid (OSFA).
   

   FAFSA Applicants:
   If you completed the FAFSA Application Process, we will send you an Award Notification in April or May. The back of this Award Notification will include a PLUS Loan Request Form. Compare your Projected Cost of Education with your financial aid awards to determine how much PLUS loan you need to request.

   Do you have to submit a FAFSA if you only want to borrow a PLUS loan?
   No. If you are sure that your income is too high to receive a Subsidized Stafford Student Loan and other need-based aid and you are not interested in borrowing an Unsubsidized (non-need-based) Stafford student loan, you can submit a PLUS Loan Request Form without submitting a FAFSA.

2. Choose a PLUS Loan Lender.
   PLUS loans must be borrowed through a private lender of your choice. For a list of featured UM Lenders, see Choosing A Lender.
   
   
   • After we receive your PLUS Loan Request Form, we will transmit your loan request data to your lender's guarantee agency.
   
   
   • Your lender's guarantee agency will then send you a preprinted "PLUS Loan Application and Promissory Note."
   
   
3. The parent and student must complete the PLUS Loan Application and Promissory Note, and return it to your lender's guarantee agency.


• Your lender will evaluate your credit and approve or deny your application.


• If your application is approved, your lender will transmit or send your loan funds to the UM Bursar's Office.


• The UM Bursar's Office will send the loan check(s) to the parent borrower for signature.


4. The parent borrower must endorse the PLUS Loan check(s) and return them to the UM Bursar's Office.


• After the Bursar's Office has received the endorsed loan checks and no earlier than ten days before classes start, The Bursar's Office will credit the loan funds to the student's account.


5. What if the Lender rejects the PLUS Loan Application?
   First, the parent should check his or her credit report for errors. If there are problems that cannot be resolved, the parent may attempt to reapply with a cosigner or the student may borrow additional Federal Unsubsidized Stafford Loan.

   If parent's PLUS loan application is denied, the student becomes eligible to borrow up to $4,000 (freshmen and sophomores) or $5,000 (juniors and seniors) in additional Unsubsidized Stafford Loan. This additional Stafford loan amount cannot exceed the student's Projected Cost of Education minus all other aid (including other loans). Unsubsidized Stafford Loans are not interest free while the student is in school. If a PLUS application is denied and the student would like to borrow additional Unsubsidized Stafford Loan, please contact our office.