Parent Loans for Undergraduate Students (PLUS)

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*For information regarding the Graduate PLUS loan please click here. DETAILS ABOUT THE PLUS LOAN: The Parent Loan for Undergraduate Students is available to parents of dependent undergraduate students attending NAU to help pay for educational costs after other financial aid has been awarded. The funds are borrowed directly from the U.S. Department of Education. The Federal Direct Parent PLUS Loan is offered under a multi-year MASTER PROMISSORY NOTE (MPN). Under this one MPN, you may receive multiple Direct PLUS Loans for the student identified in 'Section C' over a maximum ten-year period, regardless of where the student attends school. There is an additional PLUS Application Addendum that must also be completed. It will be your responsibility to keep track of how much you have borrowed each year. The student's Award Notice reflects a 'PLUS Loan - Offered' amount, which is the maximum amount you may be eligible to borrow...but it is completely optional and this figure is offered solely for informational purposes. To fill out a PLUS MPN/application, go to www.dlenote.ed.gov. In order for us to process your PLUS loan, you will also need to fill out a PLUS Application Addendum. You may also contact the NAU Office of Student Financial Aid at (928) 523-4951 or email us to request a paper PLUS packet by mail...instructions and tips for completing it will be included with the application. TERMS OF THE PLUS LOAN: The annual interest rate is variable and is capped at 9%. As of July 1, 2006 the fixed interest rate for PLUS loans is 7.9% A processing fee of 4% is assessed by the federal loan processor and deducted at the time of disbursement. Repayment begins within 60 days of the second disbursement. Interest begins to accumulate immediately upon initial disbursement of funds. PLUS funds are disbursed directly to the student after all NAU costs have been paid. PLUS APPLICATION PROCESSING: Completed applications should be mailed to: NAU Office of Financial Aid PO BOX 4108 Flagstaff, AZ 86011-4108 Make sure to include a completed PLUS Application Addendum. (for the graduate student PLUS application addendum please click here.) The PLUS Application is a LEGAL DOCUMENT...faxes and photocopies cannot be accepted! The Office of Student Financial Aid will review the application for completeness and accuracy. Incomplete or illegible applications will be returned to the applicant. This will delay processing. A credit check will be performed by the U.S. Department of Education Federal Direct Loan Servicer. If the loan is approved, the student will receive an NAU Award Letter indicating the amount. Applicants who are not approved will be notified by the Department of Education and may wish to contact the Office of Student Financial Aid for information on other resources. DISBURSEMENT OF LOAN FUNDS: PLUS loan disbursements are made directly to the NAU student. Any expenses owed to NAU will be paid first and any remaining funds will then be disbursed to the student. REPAYMENT OF YOUR PLUS LOAN: Repayment of your PLUS loan begins within 60 days of the second disbursement of the loan. You are obligated to repay the full amount of the loan and accrued interest. There are three repayment options available (Standard, Extended or Graduated). Contact the Federal Direct PLUS Loan Servicer at 1-800-848-0979 for detailed information. If you have questions regarding your PLUS loan, please contact the NAU Office of Student Financial Aid at (928) 523-LOAN (523-5626) or by e-mail at Loans@nau.edu.

Here's why a Federal PLUS Loan is the Right Choice when you need help funding your student's education
FEDERAL PLUS LOAN PROGRAM	Vs.	PRIVATE LOAN PROGRAM
PLUS loans are federally insured and are discharged in the event of total and permanent disability or death.		Not federally insured and does not offer discharge in the event of disability or death.
PLUS loans offer a low variable interest rate that will never exceed 9.00% (the current rate is 7.9%).		Have variable rates that are reset quarterly and most have a high interest cap.
Approval is not based upon income, financial need or debt-to-income ratio.		Borrowers must meet minimum income and debt-to-income ratio requirements.
Minimal credit check review. Simple one-page application form.		Comprehensive credit check and application process required.
The PLUS Master Promissory Note is good for ten (10) years -- no need to sign a new note every year!  A simple addendum is required.		Must re-apply each year for additional funds.
PLUS offers unemployment and economic hardship deferments.		No deferment during unemployment or economic hardships.
Income-sensitive, graduated and extended repayment options are available.		Income-sensitive, graduated and extended repayment options are not available.
No loan-limits -- borrow up to the cost of education (including tuition, room and board, books and other miscellaneous fees) less financial aid received.		Private loans have aggregate loan limits and most have annual loan limits.

If you need a PLUS Without FAFSA form please click here

PLUS for Graduate Students

This is a PLUS loan that is taken out by a graduate student to fund their own education; it does not involve a parent borrower. Students wishing to take out a Grad PLUS loan must complete the appropriate paperwork: 

• Grad PLUS Addendum (which gets returned to our office)
• Grad PLUS Master Promissory Note (available at www.dlenote.ed.gov)