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Smith's online PLUS Loan participation for 2013-14 begins June 1, 2013.
A PLUS Loan request will be processed only if the student's official aid award has been determined. This excludes tentative award letters sent in March to entering students. Please wait to apply until this prerequisite is satisfied.
School for Social Work scheduling differs. If you are or will be enrolled in that school, please contact that school directly for PLUS Loan instructions.
| Lender |
U.S. Department of Education (Department) |
| Interest Rate |
7.9% (fixed) |
| Loan Fee |
4.204% of loan |
| Repayment |
Begins 60 days after final disbursement. Option to defer while student is enrolled (offered during online loan request process). |
| Approval |
Schools verify amount eligibility. Lender decision is credit-based. |
| Denials |
Overrides are possible if appealed to the lender's satisfaction or if a credit-worthy endorser signs onto the loan. If not pursued, the denial allows the student to borrow an additional unsubsidized Direct Loan (processed upon request or automatically if selected during the online process). |
| Loan Period |
Loans for full-year students are treated as full-year loans, disbursing in two equal term installments. If circumstances warrant a single-semester loan, please contact us before applying. |
| Amount |
Limited to cost of attendance minus all other aid. |
| Disbursement |
Loan proceeds pay directly to students' tuition accounts. |
1. Decide how much to borrow. Things to keep in mind:
• A 4.204% loan fee is deducted from the loan amount. To account for the fee,
divide the desired net amount by .958 and round.
• If an entering student who paid an enrollment deposit, factor in a $200 payment
that is the room deposit portion (the remainder is a general deposit).
• The amount that may be borrowed is limited to the cost of attendance (billed and
not billed) minus all other aid (credited and not credited). Therefore, the limit is
not the same thing as the billed amount due (posted costs/credits only).
Depending on the composition of aid, the borrowing limit may be less than or
more than the billed amount due.
If the intent is to cover the entire balance, it is a good idea to ascertain your
borrowing limit first. This figure is available upon request at
loanhelp@smith.edu. (If the limit is less than what is needed, reducing any
work-study and/or officially accepting the health insurance through Smith will
increase the limit. Other increases based on non-standard but allowable costs
are handled on a case-by-case basis. Contact us if these apply, and wait until
any limit adjustment is finalized before requesting a PLUS loan.)
2. Apply for lender approval at www.studentloans.gov
Do not proceed if the aid award has not been determined or loan limit issue is in
progress.
3. Complete a Master Promissory Note (MPN) at www.studentloans.gov
Skip this step if you previously borrowed a Direct PLUS Loan for the same student
unless you are using an endorser.
If Denied:
Overrides are possible if appealed to the lender's satisfaction or if a credit-worthy endorser signs onto the loan. If not pursued, the denial allows the student to borrow an additional unsubidized Direct Loan, which is typically processed only upon request.
If denied, please contact us by email and let us know if you will not be pursuing the loan, appealing the decision, or using an endorser so that we know how to proceed. If not pursuing the loan, please note if the student wants an extended unsubsidized loan if that is the case.
Appealing - call Applicant Services at 800-557-7394 for assistance.
Endorsers - endorsers must complete Endorser Addendums online at the same website.
If Approved:
Smith will review your loan request for certification. Upon certification, the loan will be added to the student's aid package and originated with the Department. I will also be coded to appear as a pending credit on the student's account (if term changes are already posted), which can be viewed online.
The Department will send a disclosure for the officially established loan directly to you. This serves as your notification that the loan was processed.
If a loan is fully approved and linked to a valid promissory note, the current term portion will pay out during the next disbursement process. Disbursement is run on a weekly basis with some exceptions and provided there are no unforeseen problems, and not earlier than 10 days before the start of each term. Notification of disbursement is issued to borrowers by this office via email.
The Department will then assign the loan to one of its several servicers and notify you of this activity and the servicer's name and contact information. We recommend registering at your servicer's website to monitor your loan account.
Please submit any questions or concerns via E-MAIL to loanhelp@smith.edu.
Last updated: July 9, 2013
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