Applying for a PLUS Loan and the Master Promissory Note (MPN)


To take out a Direct Loan for the first time, you must complete a PLUS Application and master promissory note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). The MPN will be provided either by your child's school or the Department.

If your child's school offers the option of completing the MPN electronically, you can do so online at the StudentLoans.gov website. If you are borrowing Direct PLUS Loans for more than one student, you'll need to complete a separate MPN for each one. To complete an MPN online, you will be required to use your Department of Education-issued PIN (not your child's). If you do not have a PIN, you may request one from the official PIN site.

In most cases, once you've submitted the MPN and it's been accepted, you won't have to fill out a new MPN for future loans you receive to pay for the educational expenses of the same student. Unless your child's school does not allow more than one loan to be made under the same MPN, you can borrow additional Direct Loans on a single MPN for up to 10 years.

You'll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.

Types of Loans

Parents


Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.

    With Direct Loans, you
  • Borrow directly from the federal government and have a single contact—the loan servicer—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools;
  • Have online access to your Direct Loan account information via your servicer's website.
  • Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
Types of Direct Loans
The following are made through the Federal Direct Loan Program, which is administered by the U.S. Department of Education:

▶ Direct Subsidized Loans
Are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods.

▶ Direct Unsubsidized Loans
Are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.

▶ Direct PLUS Loans Are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

▶ Direct Consolidation Loans
Eligible federal student loans can be combined into one Direct Consolidation Loan.



Post 9/11 Gi Bill

To see more detail and eligibility please go to the GI Bill Website

http://www.gibill.va.gov/