participating in the Direct Loan Program may award Direct Loans as part of the financial aid package. If a Direct Loan is not included in the aid package, a student may contact the school to request loan information. Award Procedure: Schools participate in the Direct Loan Program either by originating loans or by using an alternative originator to originate loans. The school must certify the borrower's eligibility to receive the funds. To obtain a Direct PLUS loan, the parent shall complete an application and authorize a credit check. If the parent does not have an adverse credit history the loan maybe disbursed. Schools may disburse funds by crediting them directly to the student's account at the school, issuing a check or cash, or by initiating an electronic fund transfer. Deadlines: None. Range of Approval/Disapproval Time: None. 130 Appeals: None. Renewals: None. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: None. Length and Time Phasing of Assistance: Applicants may apply for a loan for any year of school. There are four repayment plans that are available for Direct Loan borrowers: (1) A standard repayment plan with a fixed monthly payment amount over a period of up to 10 years; (2) an extended repayment plan with a fixed monthly payment amount paid over a period of 12 to 30 years, depending on the amount owed; (3) a graduated repayment plan with a monthly payment that will increase generally every 2 years. The
|
