JCC DIRECT PARENT PLUS LOAN Frequently Asked Questions (FAQs)
A parent borrowing on behalf of a JCC student has access to Federal Parent PLUS loans from the U.S. Department of Education’s William D. Ford Direct Loan Program. PLUS loans can help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
To apply for a Direct Parent PLUS Loan at JCC you must:
- Complete your student's annual FAFSA (Free Application for Federal Student Aid). Federal regulations require the college to verify that the student who will benefit from your PLUS loan is eligible to receive Title IV federal financial aid. The FAFSA Student Aid Report is required to confirm that your child meets student eligibility criteria.
- If your student's FAFSA is selected for Verification, that process must completed before a JCC Financial Aid Award Notification can be issued with the kind and amount of aid your child is eligible to receive. We recommend you wait to receive the Award Notification so that you can make informed decisions about your PLUS loan needs.
- For an overview of PLUS loans, including current interest rate and origination fee information, see studentaid.ed.gov.
- Either biological or adoptive parent (or a step-parent listed on the FAFSA) can apply for a PLUS loan for a dependent child enrolled in at least 6 credit hours. Parent borrowers must have a good credit history, not be in default on a Federal student loan, or owe a refund on any Federal grant money. In addition, you and your child must be US citizens or eligible noncitizens and must meet other general eligibility requirements for the Federal Student Aid programs.
- Apply for a Direct Parent PLUS loan on-line at StudentLoans.gov. Typically loans are taken out for the entire academic year, with half disbursed in the fall semester and the remaining half in the spring semester. Loans for summer study are a separate request. The student must be enrolled in a minimum of 6 credits per semester for PLUS loan eligibility. The yearly limit on a PLUS loan is equal to the student’s cost of attendance less other financial aid received. JCC offers an optional loan need worksheet that can help you determine your student's needs. It will walk you through estimating the student’s direct and indirect expenses to calculate how much you might need to borrow. Remember that you might need to request a slightly higher amount because of the origination processing fee.
- During the on-line application process, you may also need to sign the Master Promissory Note. You must sign this binding legal document to borrow a Federal Direct PLUS Loan. Typically the MPN is valid for 10 years, so if you previously borrowed a Direct PLUS Loan for this student, you may not need to sign a new one. Terms and conditions for the Parent PLUS Loan are established by Congress and outlined in your master promissory note. For questions and additional information, view your account at StudentLoans.gov. You can cancel your loan even after signing your MPN by notifying our office.
- JCC will receive electronic confirmation of your loan application status and will notify you via US mail of your final loan approval.
- The Department of Education will assign your loan to a servicer who will work with you on repayment plans.
How will I receive this money?
After approval, loan funds be temporarily applied to you student's college bill. Funds will be disburse and applied toward your student’s bill in two (2) equal installments, one at the beginning of the loan term and one at the midpoint of the loan period (typically the beginning of each semester). Your student can view his/her student account at https://banner.sunyjcc.edu. You will be notified in writing when the college receives your loan funds, after classes begin. After funds are received, the JCC business office will issue any refund in excess of student charges within 14 days via US mail. This refund will be issued in the name of the parent borrower unless you indicate otherwise with your online application.
What if I’m denied?
If your loan is denied due to adverse credit, you will receive further instructions from the Department of Education. You may choose to rehabilitate your credit standing or re-apply with an endorser (co-signer). Your student may be eligible for up to $4,000 additional unsubsidized Stafford loan funds if your PLUS loan is denied. Please contact the JCC Financial Aid Office at (716) 338-1009 for more information.
What is NSLDS?
- Federal regulations require that information regarding your loan, including amounts, be submitted to the National Student Loan Data System (NSLDS). This loan information will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
- You can access your NSLDS information with your Department of Education issued PIN. Here you can find information about your loan totals and loan servicers, including contact information.