PLUS LOANS at Le Moyne College

Following our simple procedure will help insure the loan will be processed and disbursed in a timely manner.

Le Moyne College recommends you complete the process of applying for all other types of aid before you pursue a loan.

What is the Federal Parent Loan for Undergraduate Study or the PLUS Loan?

All parents and some stepparents are eligible to apply for a PLUS Loan regardless of income, as long as they have a good credit history.

Additionally:

• The student must qualify as your dependent.
• You and the student must be U.S. citizens, nationals, permanent resident aliens, or other eligible non-citizens.
• You and the student cannot be in default on any Title IV student loan or owe a refund on any Title IV grant.
• If the student plans to attend an out-of-state college, you must be a legal resident of New York State for the 12 months before the loan’s academic period begins, in order for HESC to guarantee the loan.
• The student must:
• Be accepted or enrolled (at least half time) in an undergraduate program leading to a degree, certificate, or diploma at an eligible college or school.
• Maintain satisfactory academic progress.
• Comply with applicable Selective Service requirement.
  

How Much Can You Borrow?

Up to the student's cost of attendance, minus any other financial aid. There is no limit on the aggregate amount. (use the chart provided in your financial aid award letter guide)

What Do These Loans Cost?

The interest rate on FPLUS loans is currently 8.5%. It is based on US Treasury Bill rates and subject to change annually. Under present law, it cannot exceed 9%. Each loan also carries an insurance fee of 1% and an origination fee of 3% of the amount borrowed. The lender deducts these fees from each disbursement sent to the college.

How Do I Apply?

• Apply online for the Parent PLUS loan through the New York State Higher Education Services website
  www.hesc.org
• You will need to choose a lender during this process. We have identified lenders we have worked with in the past and who have provided our students with efficient servicing of their loans. We will process a PLUS loan for whatever lender you choose. (For smooth and efficient processing of your PLUS loan please follow the process we have identified)
• After you complete the online application, they will review your credit history and notify you of your PLUS loan eligibility.
• Once your eligibility has been determined, an electronic transmission will notify the Financial Aid office at Le Moyne College.
• We will then certify your status online.
• You will be notified by NYS Higher Education if any other necessary paperwork is needed to complete the loan.
• If you are not eligible for the PLUS loan, the student may have additional eligibility for the Federal Stafford Unsubsidized Loan. (If this occurs please contact our office)

How Are the Funds Disbursed?

Your lender sends installments of FPLUS loan funds to the college, which applies them to the student’s account for education expenses (tuition, room and board, etc.). Then the college sends any remaining funds directly to you — or, with your permission, adds them to the student’s school account.

When Do I Start Repayment?

The first payment is due within 60 days from when the loan is fully disbursed (that is, when the lender sends the final disbursement to the college). Interest, however, begins accruing on the day of the first disbursement. While you can capitalize the interest — that is, add it to the principal — you should pay it whenever possible. You can also include FPLUS loans in the Federal Consolidation Loan Program. Discuss loan consolidation with your lender.