Other key information
WSU uses its own “in-house” loan application for processing Direct PLUS Loans found on myWSU versus the federal government’s application found on studentloans.gov. SFS’s PLUS application is only accessible to you once Third Party Access has been granted to your parent borrower and in turn, links it directly to your myWSU account.
The Benefits of WSU’s PLUS Application
- Both your parent borrower and you will receive all communications about the loan’s status; where just your parent receives this information when the application processes through the federal government’s system.
- Troubleshooting is quicker and updated more often with WSU’s application versus possible delays in the federal application. This allows SFS to be more responsive to your needs.
- Because the application links directly with your myWSU account, duplicate applications for the same loan are eliminated.
General Reminders about Direct PLUS Loans
- The U.S. Department of Education is the lender.
- The borrower must not have adverse credit history.
- The maximum loan amount is the student’s cost of attendance (determined by WSU) minus any other financial aid received.
If a parent is denied the Parent Plus Loan
A parent borrower who is denied a Direct Parent PLUS Loan because of adverse credit information has certain rights and options. A parent may take the following actions to see if the loan may still be approved:
- Appeal the credit decision: Appeal directly to Federal Direct Loan (FDL) Program. They can be contacted at 1-800-557-7394 (Option 3) for more information.
- Add an endorser (co-signer) to the loan: Obtain a credit-worthy endorser (co-signer). An endorser is someone who does not have an adverse credit history and agrees to repay the loan if the student is unable to repay it. The endorser may not be the student. An Endorser Addendum must be completed by the loan co-signer, and submitted to the Federal Direct Loan program for processing. For instructions, please contact Direct Loan Applicant Services at 1-800-557-7394 (Option 3). A parent with an endorser must complete the MPN each year.
In either of the above cases, it is a requirement that the student 1) Contact our office to let us know if they are pursuing one of the above options, and 2) Complete PLUS Counseling at studentloans.gov before the loan funds can be disbursed to the student.
How to add an endorser to a PLUS loan
The endorser agrees to repay the Direct PLUS Loan if you do not repay it. The endorser cannot be the student on whose behalf you are borrowing.
The endorser takes these steps
- Create an FSA ID and sign in at studentloans.gov.
- Click on “Endorse a Direct Plus Loan.”
- Enter the loan ID.
The loan ID can be found in the denial email received from the Department of Education. The ID starts with the student’s SSN followed by “P18G0380000” and ending in the number of PLUS Loans sent to Department of Education. If a student has been offered multiple PLUS Loans, the Loan ID will end in “1”, “2”, etc. (example: SSNP18G03800002). NOTE: If applying for the 2016-2017 school year the ID is: P17G0380000
The borrower takes these steps
Once the parent/graduate student has obtained an endorser, the final step is for the borrower (aka the parent/graduate student) to complete the loan counseling requirement. To do this:
- Go to studentloans.gov
- Log into the site with their FSA ID
- Click on “Complete PLUS Counseling”
- Click on “PLUS Counseling” (if in doubt, see the blue highlighted description to the right of your selection)
Department of Education will send our office the updated file once the PLUS Counseling has been completed. It can take the university a few days to receive the file and get it updated in myWSU.
Additional unsubsidized direct student loan
If a Parent PLUS loan application is unsuccessful, a student may request to borrow additional funds through the Federal Direct Unsubsidized Loan program.You, the student, may only apply for the additional Direct Unsubsidized Loan if your parent(s) have been denied. If the Parent PLUS Loan is later approved, the student will no longer be eligible for the additional Direct Unsubsidized Loan.
The PLUS Loan denial must be on file with our office before an increase to your additional unsubsidized student loan can be processed. To make a request to borrow the additional funds through the Federal Direct Unsubsidized Loan Program, you will need to complete WSU’s Parent PLUS loan decline form.
Once WSU is advised that you are not pursuing the PLUS loan, and you’d like the unsubsidized Loan funding offered to you, the PLUS loan will be cancelled and a supplemental direct unsubsidized loan will be offered to you.
The maximum additional amount you may request is $4,000 per year for freshmen and sophomores, and $5,000 per year for juniors and seniors. You will then need to accept the additional loan in myWSU.
Other options to consider
Sometimes, the additional direct unsubsidized loan the student receives from the PLUS denial processing is still not enough to cover the remaining cost of attending WSU. In these circumstances, a student and/or parent may want to consider the following alternatives: