PLUS Loan Frequently Asked Questions

How will I know if I am eligible?

After completing the application at www.studentaid.gov, you will be notified by the Direct Loan Servicing Center of your loan eligibility. Generally, you are eligible if:

  • You filed the Free Application for Federal Student Aid (FAFSA) for this academic year
  • You do not have an adverse credit history (a credit review will be completed)
  • You are not in default on a federal student loan (including Federal Direct PLUS Loan)
  • You meet the other eligibility requirements outlined on your loan application.

When can I apply for the PLUS loan?

Once the FAFSA is submitted, a PLUS loan application can be made at any time throughout the academic year. The online application can be completed at www.studentaid.gov.

What is a Master Promissory Note (MPN)?

A promissory note is a binding legal document that lists the conditions of your loan and the terms of repayment. Instead of completing a promissory note every year, a Master Promissory Note (MPN) is a multi-year promissory note that only has to be completed once while you are attending Miami. The MPN will simplify the processing of your future PLUS loan(s). This MPN will be valid for 10 years, unless you must obtain a co-signer on your loan.

How do I sign an MPN?

If you do not have a valid PLUS Master Promissory Note (MPN) on file, you may complete the MPN at www.studentaid.gov. You will need a FSA ID to complete the MPN; this is the same username and password used when completing the FAFSA. If you don’t have a FSA ID, one may be obtained online at the U.S. Department of Education's FSA ID site. You may request a paper MPN; however the disbursement of funds is delayed up to two weeks or more from the point in which Miami University receives the completed MPN. Because of this delay in disbursement, Miami University recommends the electronic MPN process.

How do I know if I have a valid MPN on file?

You have met the requirements for an MPN if you had an approved PLUS loan and signed an MPN for a previous academic year and and all of the following are true:

  • The MPN is designated for the same student
  • The MPN is signed by the same parent
  • The MPN does not have an endorser

If one of the above statements is not true, you will be required to complete a new promissory note.

If I already have a PLUS Master Promissory Note (MPN) on file with Miami University, what else is required?

A signed and completed Federal Direct PLUS Loan Application is confirmation that you wish to pursue a loan for this academic year. You may apply online at www.studentaid.gov. In addition to the PLUS Loan Application, the Free Application for Federal Student Aid (FAFSA) must be submitted each academic year.

What is the interest rate for a PLUS loan?

The interest rate is fixed and is adjusted each year on July 1. (See information about interest rates and fees.)

When will the PLUS loan disburse?

In accordance with federal loan regulations and Miami’s disbursement schedule, the loan will be applied to the student’s account once all requirements are met. Federal Direct Lending deducts a loan fee from each disbursement. (See information about interest rates and fees.) If enrolled fall and spring semesters, one-half of the loan will be disbursed at the beginning of fall semester and the remaining half will be disbursed at the beginning of spring semester. If enrolled one semester only, the loan will disburse in one disbursement at the beginning of the semester. If the PLUS loan results in an overage on the student’s account, a check is made payable to the student and mailed to the home of the parent borrower, unless the parent requests on the Federal Direct PLUS Loan Application that the refund be issued to the student via direct deposit (sign up on BannerWeb).

What if additional financial aid is received and I want to reduce or cancel my PLUS loan?

If your student received additional financial aid and you now wish to reduce or cancel the amount you borrowed with the Federal Direct PLUS loan, it is important that you notify the One Stop in writing (OneStop@MiamiOH.edu). You may cancel all or a portion of your loan after funds have been credited to your account by notifying us in writing within 30 days after the date of your loan disbursement notice. After 30 days, you will work with your loan servicer directly. Canceling your Federal Direct PLUS loan will not make your student eligible for additional unsubsidized loan amounts. If the additional financial aid received results in aid that is in excess of the cost of attendance, we will automatically reduce the appropriate loan fund. These loan funds will be returned to the U.S. Department of Education. The amount returned will appear as a charge on your monthly bill.

What if I want to apply for additional PLUS loan funds?

You may apply for additional PLUS loan funds by completing another PLUS loan application at www.studentaid.gov. You need to list the additional amount that you are requesting. Please note that your credit history may be reviewed again to determine your eligibility. The total amount of a PLUS loan may not exceed the cost of attendance minus all the financial aid and resources you receive.

What if my PLUS loan is denied due to the result of my credit review?

If your PLUS loan is denied due to the result of your credit review, you will receive notification from the Direct Loan Servicing Center. You may choose from the following options:

  • You may try to have a credit status override completed by the Direct Loan Servicing Center. Please contact the Direct Loan Servicing Center at 1-800-557-7394.
  • You may provide documentation to the Direct Loan Servicing Center if you have extenuating circumstances. Your request for a PLUS loan will be reviewed again by the servicer.
  • You may have a third party endorser co-sign the PLUS Loan Application with you. The Direct Loan Servicing Center will send you a packet of information for this option.
  • If you are successful in obtaining a credit status override OR third party endorser to co-sign the PLUS Loan Application, you will be required to complete PLUS Counseling at StudentAid.gov.
  • You may choose not to pursue the denied PLUS loan and your student may borrow additional funds for the current academic year through the Federal Direct Unsubsidized Stafford Loan Program. If you did not check this option on your PLUS loan application, please write or fax a letter with your signature and your student’s signature to the One Stop stating that you do not wish to pursue the denied PLUS loan and that you request the student receive the additional unsubsidized loan.Below is the maximum additional funds that can be borrowed by your dependent student:
    • Students with 63 or less credit hours earned - up to $4,000 per academic year
    • Students with 64 or more credit hours earned - up to $5,000 per academic year
    • Students enrolled in an associate’s degree program –up to $4,000 per academic year

If additional information is needed, please contact the Direct Loan Servicing Center at 1-800-557-7394.

How soon do I have to begin making payments after my in-school deferment ends?

Parents have the option of beginning repayment either 60 days after the loan is fully disbursed, or defer until six months after the dependent student ceases to be enrolled on at least a half-time basis. Approximately 7-10 business days after the first disbursement of your loan, your loan is assigned to a loan servicer who will then send you information regarding your loan. Repayment of PLUS loans is managed by your loan servicer. Parent borrowers with a PLUS loan should contact their loan servicer if they wish to delay repayment on their loan until six months after the student has ceased at least half-time enrollment. To review your loans and to obtain your loan servicer contact information, you may acess www.nslds.ed.gov. You will need to login using your FSA ID. Interest accrues as soon as the first disbursement is made, including periods of deferment. You will have from 10 to 30 years to repay depending upon the repayment plan you select.