Federal PLUS Loan Application Process

Parent borrower completes the PLUS Pre-Approval and PLUS Information/Request form

After the student and parent complete the FAFSA process and the student is determined eligible for federal aid, the parent borrower must complete the PLUS Pre-Approval process with their lender. (The PLUS Pre-Approval process is where the lender initiates a credit review of the parent borrower to satisfy the federal requirement that the parent borrower passes a credit check.) If the parent borrower receives confirmation of credit approval from their lender, the parent borrower should then complete the PLUS Information / Request Form and the Authorization To Distribute PLUS Loan Proceeds, then return both forms to the Department of Student Financial Aid. Also, if the student has not completed the Supplemental Information, which is a part of the award letter notification process, the student must complete the Supplemental Information and submit it to the Department of Student Financial Aid before the Federal PLUS Loan request can be processed. (The Summer Request form substitutes for the Supplemental Information for Summer School applicants).

School processes loan request

The Student Loan Office, within the Department of Student Financial Aid, will award the PLUS Loan and create electronic loan applications for eligible students whose parent borrower has received credit approval confirmation and submitted a completed PLUS Information / Request Form and the Authorization To Distribute PLUS Loan Proceeds. Then, the Student Loan Office reviews each loan application to ensure completeness and eligibility. When the Student Loan Office completes the review, they electronically transmit the eligible PLUS loan applications to the appropriate lender/loan agency for processing. (Please note that federal regulations prohibit MSU from processing a loan after the end of the loan period).

Lender and guarantor process loan

The lender/loan agency will review the loan application for completeness and eligibility. When deemed eligible, the lender/loan agency will submit the eligible loan application to the guarantor for approval. When the lender/loan agency receives approval from the guarantor, they will determine if parent borrower needs to complete a Master Promissory Note.

Master Promissory Note (MPN)

The MPN is a multi -year promissory note that parent borrowers must use when applying for the Federal PLUS Loan. This means that when a parent borrower signs the MPN, he or she does not have to sign another MPN for future Federal PLUS Loans for the same student so long as the same lender is used.

Parent borrower completes the MPN, if needed, and the lender initiates the disbursement process

If the parent borrower has not processed a MPN with the lender, the lender will place the loan on hold until they receive a MPN form the parent borrower. (Most lenders offer an online PLUS Loan MPN that parent borrowers can complete with an electronic signature. Parent borrowers who wish to complete a paper MPN, should contact their lender for information). The parent borrower completes the MPN and submits it to the lender/loan agency. When the lender/loan agency receives the completed PLUS Loan Promissory Note, they will complete the loan application process and initiate the disbursement process.

NOTE: Parent borrowers who have not yet completed the Master Promissory Note with their lender may want to contact the lender in advance to complete the Master Promissory Note. By contacting the lender in advance, delays in the receipt of loan funds may be avoided. If the lender determines the parent borrower has already processed a MPN with them, the lender will complete the loan application process and initiate the disbursement process.

Fall and/or Spring 2009-2010

• Click here for the PLUS Pre-Approval Process
• Click here(PDF) for a PLUS Information/Request Form and Authorization to Distribute PLUS Loan Proceeds