Undergraduate Federal Plus

Application process for Federal Parent PLUS loan:

  1. Both the student and parent must complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. Our school code is 002780.
  2. Parent must submit a PLUS loan promissory note (MPN) online at studentloans.gov, indicating the amount requested. By submitting the application, you are consenting to a financial credit-check and permitting the Department of Education to inform The New School of the results. Our federal school code for loans is 020662.
  3. Once we receive notification that the MPN and credit-check are approved, we will add the PLUS loan to your aid package, confirm enrollment and eligibility, and process the loan.
  4. Funds will be disbursed directly to The New School, and you will be notified when these funds have been applied to your student’s account.

Important Notes: To qualify for a Parent PLUS Loan you must be the parent of a dependent undergraduate student. In addition, PLUS Loans require credit approval which is valid for 90 days. To avoid disbursement delays and an additional credit review, we recommend that PLUS borrowers complete the application process no sooner than June 15 for fall/spring term (academic year) loans, and November 15 for spring term loans. Please have the student monitor his/her application status online at https://my.newschool.edu to ensure that your financial aid file is complete.

In the event that an Undergraduate PLUS loan applicant is denied the loan based on the credit review, the dependent student is eligible for additional unsubsidized Direct Loan funds. Students should submit proof of the PLUS Loan credit denial in order for the additional unsubsidized loan to be processed.

If you anticipate receiving a refund from the proceeds of this loan, please note that refunds will be sent directly to the parent unless specified otherwise in writing. Refunds will not be processed until school charges are paid in full for the semester.

Amount You Can Request: Borrowers can request up to the cost of attendance (minus any financial aid received). Please be aware that the default loan period that will be used for all PLUS applications received before January 1 is fall and spring. The default loan period that will be used for PLUS applications received on or after January 1 is spring only. If you prefer another loan period, you must notify our office in writing.

Interest: 7.9 percent. Interest begins accruing from the date funds are disbursed to the school.

Fees: There is a guarantee fee of up to 1 percent. There is an origination fee of 3 percent. Both fees are deducted from the proceeds prior to disbursement.

Repayment: Repayment of your PLUS begins within 60 days of the final disbursement of each loan, unless the borrower requests otherwise. The repayment period is generally 10 years or less, but some lenders allow extended repayment periods.

 
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