The Student Loan Revolution: Parents

WHAT DOES THIS MEAN FOR ME?

Since Federal Parent PLUS Loans are credit based, Parents that used this program as a resource had to complete a new Master Promissory Note each year. That will not change. The only difference is that instead of choosing a lender each year, all Parent PLUS Loans will be originated through the Direct Lending Program. 

 WHAT HAPPENS TO PLUS LOANS I BORROWED FROM PREVIOUS LENDERS?

 In short, nothing. All of the terms, benefits, interest rates, and repayment time-tables you had under your old lender should remain the same.  When your loans enters repayment you will still pay the lender you borrowed the loan from and you should not notice anything different.

You will only notice a change if your loan is sold. Previous lenders do have the option to sell your PLUS loan to the Department of Education. If that happens, you will notice some changes. Each lender will have their own methods of notifying you of the sale of your loan and what will happen next. At this time, we recommend contacting your lender to see what their plans are for your previous PLUS loans.

HOW DO I APPLY FOR A PARENT PLUS LOAN STEP-BY-STEP? 

1. List your information on your Student’s Financial Aid Acceptance Form.  Your son or daughter was sent a Financial Aid Acceptance Form with their Award Letter. At the bottom of this form, in the orange “Loan” box, it asks Parents interested in apply for a Parent Plus Loan to listed their Social Security Number and Name. This information helps us search for and track the loan to make sure it is processed for your student in time for the start of classes. If you are uncomfortable providing this information on the form, or have already submitted the form, you may also call us with the information at 207.941.7176.  
2. Retrieve your PIN. You will need the PIN you used to sign your son or daughter’s  FAFSA to begin the loan process. If you have forgotten it, need to apply for a PIN because you were not the Parent who signed your student's FAFSA, or are having trouble with your PIN please refer to the PIN site: www.pin.ed.gov
3. Log onto the Direct Lending Site using your information: Visit StudentLoans.gov . In the “Manage my Direct Loan”  box, click the green “Sign In” button. MAC USERS NOTE: Students and parents who tried using Safari to sign in could not see the green “sign in” button. If you experience this please try again using FireFox or another browser.
4. Complete the application using parental information: Once logged in, click on “Complete MPN” on the left hand side of the page (third bullet down). From there, you will be asked to Select the type of loan you would like to receive. Click on “Parent PLUS”. Once you are redirected to the application page, it will ask for “Personal information.” Enter your information. They will ask for student information at the bottom of the page.
5. Complete Reference Information: Section 2 of the application asks for name, address, phone number, and relationship of 2 references. Complete both boxes of information and click “Continue.”
6. Read your Terms and Conditions: Section 3 is broken down into Sections D-H. Once you have read through each section a green checkmark will appear at the top right hand corner of the box indicating  which sections you have read through. Section F outlines your Master Promissory Note. It is very important to read through all of this information and print a copy for your records. When you have read through all sections click the box that indicates you have reviewed the information and that you acknowledge it is true and correct.
7. Edit Incorrect Information: As a part of Section 3 (Terms and Conditions) you have the opportunity to correct any errors before “signing.”  To edit simply click the “Edit” button at the top right hand corner of each section. If all information is correct proceed to step 8 below!
8. Sign the Master Promissory Note (MPN). If all information is correct, put your Name, Middle Initial, and Last Name in the fields at the bottom of the page and click “Sign”.
9. Receive confirmation email from the Department of Education: The email address you list in the application will receive confirmation if the application has been successfully submitted. If you do not receive this email please contact us at financialaid@nescom.edu .