Fall/Spring Federal Direct PLUS Loan Application Process
(Student and parent steps: 1-5)
1. Student completes the Free Application for Federal Student Aid (FAFSA) and submits it to the Federal Processor.
(See How to Apply -Undergraduate Students- Step by Step Process - Step 1 and 2.)
2. Student confirms that MSU receives the FAFSA results and provides MSU with any other required documentation.
(See How to Apply - Undergraduates Students- Step by Step Process - Step 1 and 2.)
3. Student completes the Supplemental Information and the on-line Award Notification Letter process.
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 Student Loan Office can process the Federal Direct PLUS Loan request, the Supplemental Information must be completed and on file.
4. Parent borrower completes the on-line Direct PLUS Loan Request with Federal Direct Student Loans.
The parent borrower completes the on-line Direct PLUS Loan Request Process with Direct Student Loans at StudentLoans.gov. Through this request process, the parent borrower submits loan application information to Federal Direct Student Loans and authorizes the U. S. Department of Education to obtain a credit report to determine eligibility for the Direct PLUS Loan. To be eligible, no adverse credit should exist. An endorser option is available to parent borrowers with adverse credit history.
5. Parent borrower completes the Direct PLUS Loan MPN, if needed, and submits it to the Federal Direct Student Loans.
If the parent borrower has not processed a Federal Direct PLUS Loan Master Promissory Note (MPN), he or she must complete the MPN with Federal Direct Student Loans at StudentLoans.gov. The Direct PLUS MPN is a multi -year promissory note that parent borrowers must use when applying for the Federal Direct PLUS Loan. The MPN is effective for ten years.
6. Federal Direct Student Loan receives and processes the Direct PLUS Loan request.
Federal Direct Student Loans receives the parent borrower's request for the Direct PLUS Loan. They initiate a credit review and then make a credit decision on the parent borrower. Additionally, they organize the parent borrower's information and prepare to deliver this information along with the credit decision to MSU in an electronic file.
7. Federal Direct Student Loan receives and processes the MPN.
Federal Direct Student Loans receives the completed Direct PLUS Loan MPN from the parent borrower and maintains it on file to match it later with the appropriate loan origination record.
8. Federal Direct Student Loan notifies MSU of the parent's Federal Direct PLUS Loan request for the student and the result of the credit review.
Federal Direct Student Loans sends an electronic file to notify MSU of the parent's Direct PLUS Loan request. This notification includes the parent borrower's information and specifies whether the credit for the loan was approved or denied.
9. MSU receives and processes the loan request.
MSU receives the loan request and the credit status notification from Federal Direct Student Loans. If the credit is approved, and the student and parent have met the eligibility requirements, the Student Loan Office within MSU's Department of Student Financial Aid will award the Direct PLUS Loan and create an electronic loan origination record. Then, the Student Loan Office reviews the Direct PLUS loan origination record to ensure completeness and eligibility. If the credit is denied, the loan record is reviewed for whether or not an endorser will be pursued by the parent borrower.
10. MSU sends the loan origination to Federal Direct Student Loans.
When the Student Loan Office completes the review, they electronically transmit the eligible Direct PLUS loan origination record to Federal Direct Student Loans for processing. (Please note that federal regulations prohibit MSU from processing a loan after the end of the loan period). If the credit is denied without a pursued endorser, the Student Loan Office will notify the student / parent of the loan denial by Federal Direct Student Loans and the option for the student to apply for the Additional Direct Unsubsidized Stafford Loan due to Denial of the Direct PLUS Loan. See Request for Additional Direct Unsubsidized Federal Stafford Loan Due to Denial of the Federal Direct (Parent) PLUS Loan link under Loan Index (page) / Federal Direct Parent PLUS Loan.
11. Federal Direct Student Loans receives and processes the loan.
Federal Direct Student Loans receives and reviews the loan origination record for completeness and eligibility. They match the loan origination record with the Direct PLUS Loan MPN, if on file. If no MPN is on file, Federal Direct Student Loan will contact the parent borrower to complete a MPN.
12. Federal Direct Student Loan notifies MSU of the approved loan origination and the MPN status.
Federal Direct Student Loan sends an electronic file to notify MSU of the approved loan origination and the status of the Direct PLUS Loan MPN.
13. MSU initiates disbursement for eligible students.
MSU receives the approved loan origination and the Direct PLUS Loan MPN status notification from Federal Direct Student Loans. When the student satisfies all of the eligibility requirements (maintained satisfactory academic progress, enrolled at least half-time, etc...) for the loan and the anticipated disbursement date is on or after the approved loan disbursement date, MSU initiates the disbursement process for students with an approved Direct PLUS loan origination and an approved Direct PLUS Loan MPN.
