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In order to apply for a Federal Direct Graduate PLUS
Loan, the student must complete and submit the Free Application for Federal
Student Aid (FAFSA) for the academic year he or she plans to attend. A
student is eligible to be considered for the Federal Direct Graduate PLUS
Loan if they have a valid EFC on file in the Financial Aid Office, are a
regular student enrolled in an eligible program on at least a half-time
basis, have not been awarded other financial aid up to the cost of
attendance, and are making satisfactory academic progress.
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An Award Letter will be posted on SalukiNet for
eligible students who are being offered a Federal Direct Graduate PLUS
Loan. The student must accept or reject the initial loan offered for an
academic year. If the loan is accepted, the student must complete a SIUC Graduate Plus
Loan Application and submit the completed application to the Financial
Aid Office. The first time a loan is accepted, the student must complete a
Master Promissory Note by accessing the Electronic
Master Promissory Note web page. The loan will then be credited to the
student's SIUC account, divided into two payments for the academic year.
The student will also be required to participate in an Entrance Loan
Counseling session by accessing the Entrance
Counseling web page. The student can cancel all or part of the loan
within 90 days of the date the school notifies the student that the loan
has been credited to their account. Loan funds will first be used to pay
for tuition, fees, room and board. If funds remain after these charges have
been paid, the student will receive the remaining funds by check.
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Fees of up to 4% will be charged for Federal Direct
Stafford Loans, and deducted proportionately from each loan disbursement to
the student's account. The fee goes to the government to help reduce the
cost of the loan. The interest rate on Federal Direct Stafford Loans is
7.9%.
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When a student graduates, withdraws or stops attending
on at least a half-time basis, a 45 day grace period begins before the
student must start repaying the Federal Direct Graduate PLUS Loans. At that
time Exit Loan Counseling to explain the student's debt and repayment
options is required.
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At the end of the grace period, the student must begin
repaying the loans directly to the Direct Loan Servicing Center. The
monthly payment amount will depend on the size of the debt and the
Repayment Plan. (See the "Repaying Your Loan" section for an
explanation of Repayment Plans and examples of monthly repayment amounts)
The student will receive repayment information from the Direct Loan
Servicing Center and be notified of the date repayment begins. However,
even if this information isn't received, the student is still responsible
for beginning repayment at the end of the grace period. Payments may be
mailed to:
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Direct Loan Servicing Center
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ATTN: Payment Center
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P.O. Box 530260
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Atlanta, GA 30353-0260
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Loan payments can sometimes be postponed (i.e. a
deferment or forbearance may be granted) for specific reasons. A deferment
allows the borrower to temporarily postpone payments on a loan.
Forbearance may be granted when a student is not eligible for a deferment
but is temporarily unable to meet the repayment schedule. During
forbearance, loan payments are postponed or reduced. Some reasons for which
a forbearance may be granted include poor health or other unforeseen
personal problems, service in a medical or dental internship or residency,
service in a position under the National Community Service Trust Act of
1993, or repayment obligations equal to or greater than 20% of monthly
gross income. Deferments and forbearance must be requested! In certain
instances (e.g. total permanent disability, child care providers serving in
a low income community) a loan may be discharged (forgiven) which releases
the borrower from all obligations to repay the loan. Contact the Direct
Loan Servicing Center at 800/848-0979 or www.dl.ed.gov for
more information on these options.
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