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Student & Parent
PLUS Federal Loan Information

Introduction to the Federal Stafford Student Loan process
Requirements & Regulations
Understanding Your Loan Choices

Step 1: Complete the FAFSA at www.fafsa.ed.gov

Step 2: The Financial Aid Office will begin the loan process for borrowers by certifying loan eligibility. 

Step 3: Student are notified via email with the website link www.umobile.edu/esign to complete the Entrance Interview Counseling and Master Promissory Note.  Stafford loan funds are then sent to the University of Mobile on set disbursement dates each semester. All first-time borrowers will receive their first disbursement 30 days after the loan period begins. University of Mobile applies the loan funds to the University of Mobile student account.

Welcome to the University of Mobile.  If you’re just beginning your college career, we want you to know the Financial Aid Office is dedicated to assisting you in making the right decisions regarding your college financing.  Thoughtful planning and informed decision making now, will benefit you throughout your college career and beyond. 

Students wishing to apply for a Stafford Loan must complete a Master Promissory Note (MPN). Your signed MPN (either in ink or electronically) is valid for a 10-year period and enables you to borrow subsequent loans under the same note without requiring you to complete a new loan application each year. If you previously have borrowed a student loan, your borrower rights and responsibilities remain unchanged and you are responsible for repaying your entire student loan obligation.

The Financial Aid Office strongly encourages all new student loan borrowers to utilize the services of one of our preferred lenders listed below. Borrowing your student loan from one of these lenders will provide you with the most efficient processing and service possible.

Electronic Funds Transfer
The preferred lenders transfer loan funds electronically, a process called Electronic Funds Transfer or EFT. This means you usually receive your money within a few days after the lender disburses the funds to the University of Mobile, rather than two to three weeks. In addition, you don't have to go to the Business Office to endorse your check.

Repaying Your Loan
You are required to begin repaying your Federal Stafford loan six months after you graduate, leave school or drop below half-time attendance. Your parents are required to begin repaying PLUS loans 60 days after the loans are fully disbursed. In both cases, borrowers generally have 10 years to repay these loans.

• All students applying for a Federal Stafford Loan and parents applying for a Federal PLUS loan must be U.S. citizens or eligible non-citizens.
• All students must be enrolled half-time (at least six hours per semester for undergraduates and five hours for graduate students) to qualify for a Federal Stafford Loan or to have their parents qualify for a Federal PLUS Loan.
• Students must attend classes and maintain satisfactory academic progress to continue being eligible for their loans.
• If students withdraw from classes before the end of the term, they must still repay their loans.

The Federal Family Education Loan Program (FFELP) is the largest single source of federal aid for students pursuing higher education. This program has two main sources of funding: Federal Stafford loans for students and Federal PLUS loan for parents.

Federal Stafford Loans
There are two types of Federal Stafford Loans: subsidized and unsubsidized.

Subsidized
If you meet certain financial need criteria, the federal government will pay the interest on your loan while you attend school at least half-time or during times when you qualify for an authorized deferment.

Unsubsidized
If you do not meet the financial need criteria to qualify for a subsidized loan, you can still apply for an unsubsidized loan. You are responsible for paying the interest while you are in school. If you cannot make the interest payments, the interest will be added to your principal balance through a process called capitalization at repayment.

Federal Loan Limits
 
Class Level                            Dependent Limit                    Independent Limit
 
Freshmen (0-29 hrs)                 $3,500*                                   $7,500*
 
Sophomores (30-59 hrs)           $4,500*                                  $8,500*
 
Juniors (60-89 hrs)                   $5,500*                                  $10,500*
 
Seniors (90+ hrs)                      $5,500*                                   $10,500*
 
 
Federal Aggregate Lifetime Loan Limits
 
Dependent undergraduates:
 $23,000
 
Independent undergraduates:
 $46,000
 
Graduate and professional students:
 $138,500
 
*Students can only borrow up to the cost of attendance for their program of study. Check with the Financial Aid Office to see the cost of attendance for your program. You can only borrow one loan per academic level.

Federal PLUS Loans
If you're an undergraduate student and dependent on your parents, your parents may qualify for a Federal PLUS Loan. You must be enrolled in an eligible school, and you and your parent who will borrow the money must be U.S. citizens. The PLUS loan is available without regard to financial need. However, the lender is required to determine whether the parent borrower has a good credit history. Your parents are responsible for repaying the loan; repayment begins 60 days after the loan is fully disbursed.

To be eligible for a PLUS loan, your parents must be your natural or adoptive parents, or stepparents.

To apply for a Parent PLUS Loan online:

1. Log on to www.parentanswer.com
2. Click on the Apply for Loans tab, then click on OpenNet Parent (PLUS).
3. Choose from UM preferred lenders Regions Bank, Chase Bank, or Citibank and click
   on Apply Now.
4. If you have an account already set up, enter your user ID and password and click on Log In.
   If you have not established an account, click on Register to begin the set up.
5. Enter and verify your demographic information and your student's information.
6. Review all the instructions carefully, follow the prompts to request a PLUS credit decision, complete the application and sign it electronically.
7. If you choose to return a paper application instead of e-signing, please forward the application to: Sallie Mae • P.O. Box 147020 • Gainesville, FL 32614-7020

To apply for a Parent PLUS Loan by phone:

1. Call Sallie Mae’s Parent Answer® Service at 1-800-253-6517 for a credit decision.
2. After you receive the pre-printed PLUS application through the mail, sign and forward it to:
   Sallie Mae • P.O. Box 147020 • Gainesville, FL 32614-7020

Preferred Lender:
The Financial Aid Office strongly encourages all new student loan borrowers to utilize the services of one of our preferred lenders listed below. Borrowing your student loan from one of these lenders will provide you with the most efficient processing and service possible.

 
If you are graduating from the University of Mobile with student loan debt, you need to complete Student Loan Exit Counseling here.

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Last modified : Wednesday, February 6, 2008 10:40 AM
University of Mobile