A PLUS Loan is a federal loan for the parent of a dependent undergraduate student that allows the parent to borrow up to the cost of the student’s education minus financial aid.  The loan fees and interest rate limits are set by the federal government, but lenders may offer benefit packages that reduce the fees and/or the interest rate. The loan has an origination (processing) fee of 3% and a default (insurance) fee of 1%.  Presently, PLUS Loans disbursed on or after July1, 2006 have a fixed interest rate of 8.5%. PLUS Loans disbursed prior to July 1, 2006 have an annual variable interest rate based on the 91-day Treasury bill that is adjusted each year on July 1 and is capped at 9 %.

The loan will be disbursed directly to the student’s account in two disbursements, half for the fall and half for the spring.  Each disbursement will be net of the loan fees. Repayment of principal and interest begins within 60 days of the second disbursement.  The borrowing parent will be required to pass a credit check to have the loan approved.  If your credit is not be approved, the lender or servicer will contact you directly for assistance.  Trinity College is not involved with your credit check.

To be eligible for a PLUS Loan you must:  file a 2008-2009 Free Application for Federal Student Aid (FAFSA); be a United States citizen, national or eligible non-citizen; be borrowing to pay college costs for a dependent student who meets all requirements set forth in federal regulations; provide your Social Security number; not be in default of any Title IV Loan unless satisfactory repayment arrangements have been made with the holder; not owe a refund on any Title IV grant unless satisfactory repayment arrangements have been made; not be determined to have adverse credit as defined by the PLUS Loan program; and comply with all other requirements as set forth in the Higher Education Act of 1965, as amended. 

Please note: Parents of Trinity College students have the right and ability to select any lender of their choice in the Federal Family Education Loan Program for their PLUS Loan. The College’s financial aid professionals have identified for your convenience some carefully selected lenders who offer competitive borrower benefits including reduced fees and interest rate reductions.  For detailed information on lender selection click here.

Trinity College uses Sallie Mae Open Net system to process loan applications. You may visit their website at www.parentanswer.com to apply for your PLUS Loan online or call them at (800) 891-1410 for customer service.

Using a lender not listed on the drop down list on Open Net requires proof of approval by the billing due date including a copy of a signed promissory note and school certification.

Trinity College does not participate in any revenue sharing with these lenders or the servicer.

PLUS LOAN APPLICATION PROCESS

Step 1 – Complete a FAFSA (Free Application for Federal Student Aid).  A PLUS Loan cannot be processed until a FAFSA has been completed and accepted by the federal document processor. The FAFSA can be completed online at www.fafsa.ed.gov and you can call (800) 433-3243 for assistance.

Step 2 – Determine the amount you wish to borrow.  Using the student’s financial aid award information (if applicable) and the charges associated with the 2008-2009 academic year, determine how much money you will need to borrow to pay your child’s tuition bill. The 3% PLUS Loan origination fee may also be added to your amount. . If you need any assistance before applying, please call Jack Godfrey, the PLUS Loan processor in the Trinity College Student Accounts and Loans Office, at (860) 297-5174.

Step 3 – Apply for a PLUS Loan. Parents can log onto the Sallie Mae website at www.parentanswer.com to apply for a PLUS Loan. Parents may also call Sallie Mae’s PLUS Loan Customer Service at (800) 891-1410 for assistance.  At the time of application, the parent will select a lender and sign a PLUS Loan Master Promissory Note online. Please note that only one parent can be the borrower on a PLUS Loan.

Step 4 - Obtain credit approval. Sallie Mae, on behalf of the lender, will complete a review of the borrower’s credit report to determine loan eligibility at the time of application. If the loan is approved, the approval notification is electronically communicated to Trinity College.  Sallie Mae will contact the parent if the loan is denied and discuss the available options.

Step 5-PLUS Loan Disbursement.  Sallie Mae, on behalf of your lender, will electronically disburse the funds of your PLUS Loan to Trinity College and these funds will be applied directly to the student’s tuition account.  You will receive notification when funds are disbursed.

Please note: If you choose a lender that does not use Sallie Mae as its servicer, then the process will not be entirely electronic and therefore may take more time. You must send to Trinity College a written notification that your PLUS Loan is approved with a Master Promissory Note on file and the School Certification form. These documents must be received at Trinity College by the due date of the bill (8/15/08 fall – 12/12/08 spring) in order to avoid late fees. A notice of application or pre-approval is not sufficient documentation.