Loans

Yes. If you are a first time borrower of federal loans, you must complete Entrance Counseling and a Loan Agreement (Master Promissory Note (MPN). Both of these can be completed online using the link below and must be done before your loan(s) will apply to your account balance. The MPN is valid for 10 years, and the Entrance Counseling is only done during the first semester you borrow loan(s) at PA College.

If you are transferring to PA College and had a Federal Direct Loan at a previous school, your MPN will transfer automatically. You will need to use the link below to transfer your Entrance Counseling to PA College.

No. In fact, we recommend only borrowing the amount you need. After you click the “Accept” button when accepting your financial aid, you are able to change the amount to what you would like to borrow. Please keep in mind the amount you borrow will be split equally in half between fall and spring semesters.

While interest rates are fixed for the life of the loan, the interest rates can change each year you accept a new loan. For the current rates, please visit the Department of Education’s website for Federal Direct Loans.

Yes. These fees are called “origination fees” and are charged by the Department of Education. For the current charges, visit the Department of Education’s website for Federal Direct Loans.

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you’ll receive repayment information from your loan servicer, and you’ll be notified of your first payment due date. Payments are usually due monthly.

The application for the Graduate PLUS Loan can be found online at studentaid.gov.  Sign in using your Social Security number and your FSA ID.  After you’re signed in, choose “Request a Direct PLUS Loan” and follow the prompts.  Include the following on your application to ensure successful processing:

• Award Year 2020–2021 (for Fall 2020, Spring 2021, Summer 2021)
  
• School Name: Pennsylvania College of Health Sciences
• Loan Amount: Maximum amount (cost of attendance less any other aid) or specify your loan amount*
• Loan Period:
  • 08/2020–05/2021 (Fall 2020 and Spring 2021)
  • 08/2020–12/2020 (Fall 2020 only)
  • 01/2021–05/2021 (Spring 2021 only)
  • 05/2021–08/2021 (Summer 2021 only)

*Your loan will have two disbursements if you choose a full year loan period. Half of your loan will disburse in the fall and the other half in the spring. For example, a $10,000 Federal Direct Graduate PLUS Loan will have a $5,000 disbursement in September and a $5,000 disbursement in January, less the origination fee.

Credit approval is based on federally mandated criteria and not your credit score. In order to qualify, you must not have any of the following items on your credit report:

• Any current delinquency of 90 days or more
• Default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, or open collection within the last 5 years

Recent changes in the law that governs the terms and conditions of PLUS Loans establish a specific extenuating circumstance for certain PLUS Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS Loan applicant may qualify for a PLUS Loan based on extenuating circumstances if the applicant:

• Has been or is delinquent for 180 days or less on mortgage loan payments or on medical bill payments for the applicant or the applicant’s family, and
• Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS Loan applicants.

Credit Approval

Credit approval is valid for three months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding three months.

If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.

Credit Denial Options

Correspondence will be sent to Federal Direct PLUS Loan applicants, by Direct Loans, who receive an adverse credit determination. Information will include instructions to appeal the denial of a Federal Direct PLUS Loan application.  Such options include:

• Apply with an endorser
• Correct any invalid information on your credit report that may have led to the denial
• Appeal the denial

If you have an endorsed or appeal approved PLUS loan you will now be required to complete the PLUS counseling component on www.studentloans.gov.

The Department of Education will inform you at the time of your appeal approval or when your PLUS loan is endorsed to complete this new PLUS counseling requirement.

For additional information about these options, contact Applicant Services at 1-800-557-7394.

Yes. To receive any federal student loan (including the Federal Direct Graduate PLUS Loan), you must be enrolled at least half-time. Half-time for all graduate semesters is five (5) credits.

Undergraduate students do not qualify for the Federal Direct Graduate PLUS Loan.

Visit the Department of Education’s website for the most current information about Federal Direct Graduate PLUS Loans.

The application for the Federal Direct Parent PLUS Loan can be found online at studentaid.gov.  The parent must sign in using the parent’s Social Security number and FSA ID.  After signing in, choose “Request a Direct PLUS Loan” followed by “Parent PLUS.”  Continue to follow the remaining prompts.  Include the following on your application to ensure successful processing:

• Award Year: 2020-2021 (for loans for fall 2020, spring 2021, and summer 2021)
• Credit Balance: Indicate if you or your student should receive any refund from the PLUS loan
• School Name: Pennsylvania College of Health Sciences
• Loan Amount: Maximum amount (cost of attendance less any other aid) or specify your loan amount*
• Loan Period: 08/2020 – 05/2021 (for a full year loan) – if your student will graduate in the fall and only need a fall disbursement, choose 08/2020-12/2020

*Your loan will have two disbursements if you choose a full year loan period. Half of the loan will disburse in the fall and the other half in the spring. For example, a $10,000 Federal Direct Parent PLUS Loan will have a $5,000 disbursement in September and a $5,000 disbursement in January, less the origination fee.

Credit approval is based on federally mandated criteria and not your credit score. In order to qualify, you must not have any of the following items on your credit report:

• Any current delinquency of 90 days or more
• Default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, or open collection within the last 5 years

Recent changes in the law that governs the terms and conditions of Federal Direct Parent PLUS Loans establish a specific extenuating circumstance for certain Federal Direct Parent PLUS Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a Federal Direct Parent PLUS Loan applicant may qualify for a Federal Direct Parent PLUS Loan based on extenuating circumstances if the applicant:

• Has been or is delinquent for 180 days or less on mortgage loan payments or on medical bill payments for the applicant or the applicant’s family, and
• Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS Loan applicants.

Credit Approval

Credit approval is valid for three months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding three months.

If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.

Credit Denial Options

If your Parent PLUS Loan is credit denied, there are additional options available to the parent. At the time of denial, the Direct Loan online application process will provide information regarding obtaining an endorser or appealing a credit decision or the parent can contact Applicant Services for PLUS Loan borrowers at 1.800.557.7394.

PA College will also be informed of this credit denial within a 3 to 5 day time frame. At that time, PA College will offer the student additional Federal Direct Unsubsidized Loan eligibility that the student can accept in Self-Service.

What happens if the parent endorser or credit appeal is approved?

PA College will receive notification from Direct Lending and the Federal Direct Parent PLUS Loan will be awarded in the student’s Self-Service portal. If the additional Federal Direct Unsubsidized Loan was already awarded to the student at the time the Fedreal Direct Parent PLUS Loan endorser/credit appeal is received, the additional Federal Direct Unsubsidized Loan will be cancelled and the Federal Direct Parent PLUS Loan will be awarded in its place.

Parent requirements:

• Must be the biological or adoptive parent of the student
• Step-parents may apply if married to the biological or adoptive parent and the step-parent’s income and assets are listed on the FAFSA
• Parent applying for the Federal Direct Parent PLUS loan must not have defaulted on any previous student or parent loans
• Parent must re-apply for the Federal Direct Parent PLUS loan each academic year

Student requirements:

• Have a FAFSA completed and on file
• Be considered dependent by FAFSA
• Enrolled at least half-time (6 credits)
• Meeting financial aid Satisfactory Academic Progress

Visit the Department of Education’s website for the most current information about Federal Direct Parent PLUS Loans.

Federal Direct Parent PLUS Loans are the financial responsibility of the parents, not the student. For more information on repayment of PLUS, visit the Direct Loan Program FAQs page.

• First payment is due 60 days after the PLUS loan is fully disbursed*
• Standard repayment is 10 years
• Interest accrues while the student is enrolled

*Parents may contact the Direct Loan Servicing Center at 1-800-848-0979 to request a deferment of payment based on the dependent student’s enrollment status.