The Financial Aid Office (FAO) at Southern Illinois University Carbondale (SIUC) assists students by awarding financial aid to help pay for post-secondary education. Financial aid is awarded as grants, scholarships, loans and student employment from various federal, state, institutional and private sources. The Federal Direct Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent students to provide the expected parent contribution for their student's educational expenses, and/or make up the difference between the cost of attendance and the financial aid awarded the student. This loan is not based on financial need. The parents pay the costs for this loan and interest charges and repayment begin upon disbursement. The Federal Direct PLUS Loan is borrowed from the U.S. Department of Education. SIUC is responsible for determining student and parent eligibility, awarding the loan, ensuring a Master Promissory Note is completed by the borrower, and disbursing federal funds to the borrower. The U.S. Department of Education contracts a servicer to handle credit checks, loan approval and collection.

The parent borrower and their student must meet the following criteria to receive a Federal Direct PLUS Loan.

The student and parent borrower must:

• Be U.S. Citizens or other eligible status (permanent resident).
• Not owe a defaulted student loan or a federal grant repayment.
• Meet other requirements as applicable.

The student must:

• Be in compliance with the SIUC Satisfactory Academic Progress Policies.
• Be enrolled at least half-time. (Audited courses are not eligible to determine enrollment status.)

The parent borrower must:

• Not have an adverse credit history.

Parents may borrow a Federal Direct PLUS Loan for an amount up to the student's educational expenses minus other financial aid.

An origination fee of 4% of the loan amount is deducted from the Federal Direct PLUS Loan proceeds for the federal government. Parents are notified of this fee at the time of the loan approval and loan disbursement amounts reflect the deduction of this loan fee.

The interest rate will be 7.9% effective July 1, 2006. Interest begins upon disbursement and repayment begins either 60 days after the loan is fully disbursed, or six months after the dependent sutdent on whose behalf the loan was obtained ceases to be enrolled on at least a half-time basis. Some deferments and various repayment options are available and in some cases interest may be capitalized. The U.S. Department of Education contracts a servicer to handle the collection of loans. Parents should contact the servicer or the Financial Aid Office for more information on interest, repayment and deferments. Federal Direct PLUS Loan information is also available at: http://studentaid.ed.gov

Federal Direct PLUS Loan applications and all required documentation must be received at the Financial Aid Office by the following dates for loans to be processed:

To apply for the majority of financial aid programs at SIUC, students should file a Free Application for Federal Student Aid (FAFSA). The FAFSA should be completed as soon as possible after January 1, with Southern Illinois University Carbondale (Federal School Code 001758) listed as a school choice. SIUC does not have an institutional financial aid application, so students only need to complete the FAFSA.

Although completion of the FAFSA is not required for a parent to receive a PLUS Loan the Financial Aid Office strongly encourages students to file the FAFSA. Filing is easiest if done electronically at the U.S. Department of Education’s web site ( www.fafsa.ed.gov). Students and parents of dependent students may request a Personal Identification Number (PIN) at the U.S. Department of Education’s web site (www.pin.ed.gov). The PIN serves as an electronic signature, which significantly improves the processing time. A paper signature page must be downloaded, signed and mailed for students or parents who don't have a PIN.

1. An SIUC Application for a Federal Direct PLUS Loan is required. The SIUC Application for a Federal Direct PLUS Loan is printed from the link on this web site, completed by both the student and the parent, and submitted to the Financial Aid Office.
2. An Electronic Master Promissory Note for a Federal Direct PLUS Loan is Required. The Electronic Master Promissory Note is completed at https://dlenote.ed.gov/empn/index.jsp.
3. The Financial Aid Office determines eligibility and forwards information to the U.S. Department of Education's Direct Loan Servicing Center and to the parent. The U.S. Department of Education checks the credit history of the parent borrowers and accepts or rejects the application.
4. SIUC disburses an approved PLUS loan in semester installments. Federal Direct PLUS Loans are credited to the student's University account to pay all charges first. If the credit exceeds charges, a refund check is processed and mailed to either the student or parent as indicated on the SIUC Application for a Federal Direct PLUS Loan.
5. Parents have the right to cancel all or a portion of their PLUS loans by contacting the Financial Aid Office within 90 days after disbursement. Students should come to SIUC with sufficient funds to buy books, supplies and any other items necessary to begin the semester, even if the student is expecting financial aid or plans to work on campus. Check(s) for credit balances on the student's University account are not always available as soon as students arrive on campus. SIUC does not issue book vouchers.