Other Funding Options

The Federal Direct Parent PLUS Loan is a federally-sponsored and regulated national student loan program. The PLUS Loan enables credit-worthy parents of undergraduate, dependent students to borrow funds to pay for their child's educational expenses. The funds are borrowed directly from the federal government, and the loan will be serviced by a company contracted by the Department of Education. The servicer will be the point of contact for all repayment questions.

Details of the Federal Direct PARENT PLUS Loan
The parent is the borrow, and, if the load is approved, the parent may borrow up to the student's Cost of Attendance less other financial aid.

• Fixed Interest Rate for the 2023-2024 academic year is 8.05%.
• A federal loan origination fee (approximately 4%) is deducted from the proceeds.
• Repayment begins 60 days after the loan is fully disbursed. The parent can also request to defer payments:
  • While the parent or the dependent student is enrolled at least half-time.
  • For an additional 6 months after the dependent child ceases to be enrolled at least half-time.
• Interest will begin to accrue on the loan once it disburses to the University.
• Interest payments may be tax deductible.

Federal Direct Parent PLUS Loan Application Process
To apply for the PLUS Loan, the parent must complete the following steps:

1. Go to https://studentaid.gov/.
2. Click the Log In on the top right.
3. Log in using your (the parent's) own FSA username and password.
   • Don't have your own FSA username and password? Click "Create an Account," and follow the instructions. Once it is set up return to step 1 of this process.
4. Navigate to "MY CHECKLISTS, I’M A PARENT," and click the drop down to the right.
5. Click "Apply for a Parent PLUS Loan."
6. Review the information, and click "START."
7. Select the Award Year, your student’s information, the school information (FAFSA St. Cloud State University 002377), and complete the application.

After completion of the application, a credit check will be performed, and you will see the results immediately. If you are applying for a loan for fall and spring terms, then your PLUS Loan amount will be automatically divided equally between the fall and spring semesters.

If you have been approved

1. Continue to sign the Loan Agreement by navigating to the Dashboard (upper right corner, click drop down to the right of your name and click Dashboard).
2. Go to "MY CHECKLISTS, I’M A PARENT," and click the drop down on the right.
3. Click "Complete Loan Agreement for Parent PLUS Loan."

The school will receive notice of the PLUS Loan application result within a few business days, and will update your student’s SIS account accordingly or will email you if there is additional information needed to process your application.

If you are denied
If you are denied, the site will give you some options:

1. Will Not Pursue PLUS Loan.
   • If a parent is denied a PLUS Loan, the Department of Education allows schools to offer a limited amount of additional Unsubsidized Loan to your student. If you choose this option (Will Not Pursue PLUS Loan), the Financial Aid Office will receive notification of this, and we will offer your son/daughter additional Unsubsidized Federal Direct Loan that they can accept if needed. We will email you notifying you of this action.
2. Obtain an Endorser.
   • With a credit-approved endorser (or cosigner), and the completion of PLUS Loan Counseling for the borrower, the PLUS Loan may be approved. The endorser would log in at https://studentaid.gov/ using their own FSA username and password, and click "Apply for Aid" at the top menu and then click "Endorse a PLUS Loan." The endorser will need the Loan Reference Number from the original PLUS Loan application. If the endorser is approved, then the borrower needs to complete PLUS Loan Credit Counseling. Only the borrower needs to complete PLUS Loan Counseling (not the endorser). The borrower would return to the "MY CHECKLISTS, I’M A PARENT," click the drop-down menu and click "Complete PLUS Credit Counseling," and continue with the counseling session until complete.
3. Appeal a Credit Decision.
   • Details are explained on the site under "MY CHECKLISTS, I’M A PARENT." You may also contact the Department of Education Applicant Services at 1-800-557-7394 to follow up regarding Parent PLUS credit decisions. The Department of Education will review the appeals process and documentation needed. If the appeal is granted, the borrower must also complete the Department of Education’s PLUS Loan Counseling before obtaining the loan. Return to the "MY CHECKLISTS, I’M A PARENT," click the drop-down menu and click "Complete PLUS Credit Counseling," and continue with the counseling session until complete.

Consolidation
If you have taken out more than one Parent PLUS Loan, you have the option to consolidate all of your Parent PLUS Loans into one loan for repayment purposes. Please note that you cannot combine student loans with parent PLUS Loans. Specific consolidation links and information can be found at studentaid.gov under "Loan Repayment."

The Federal Direct Grad PLUS Loan is a federally-sponsored and regulated national student loan program. The Grad PLUS Loan enables credit-worthy degree-seeking graduate students to borrow funds to pay for educational expenses. The funds are borrowed directly from the federal government, and the loan will be serviced by a company contracted by the Department of Education. The servicer will be the point of contact for all repayment questions.

Details of the Federal Direct Grad PLUS Loan
Graduate student is the borrower, and if approved, student may borrow up to the Cost of Attendance less other financial aid.

• Fixed Interest Rate for the 2023-2024 academic year is 8.05%.
• A federal loan origination fee (approximately 4%) is deducted from the proceeds.
• Repayment begins 30 to 60 days after loan is fully disbursed. The student can also request to defer payments while the student is enrolled at least half-time.
• Interest will begin to accrue on the loan once it disburses to the University.
• Interest payments may be tax deductible.

To apply for the PLUS Loan, the graduate student must complete the following steps:

1. Go to https://studentaid.gov/.
2. Click "Sign in," and sign in with your federal username and password.
3. Go to "Request a Direct PLUS Loan," and select "Graduate PLUS," and complete the application.

After completion of the application, a credit check will be performed, and you will see the results immediately. Your PLUS Loan amount will be automatically divided equally between the fall and spring semesters. If you want to discuss alternatives to this 50/50 split, please contact the Financial Aid Office at (320) 308-2047.

• If you have been approved, continue to the PLUS Loan Master Promissory Note to complete the process. We will be notified of the results, and we will request the funds for you.
• If you are denied, the U.S. Department of Education will mail you credit appeal and endorser information. You may use an endorser as a co-signer for the loan. If you are approved with an endorser, you will need to sign a new MPN for each endorsed loan.

After considering your federal loan options, you may need additional funds to pay your educational expenses. Some banks, credit unions, and states provide educational loan options, commonly known as private loans. Private loans may have higher interest rates than federal loans. Eligibility for private loans is based on the credit-worthiness of the borrower and/or co-signer.

St. Cloud State University does not endorse any one lender. We provide an online loan comparison tool, FASTChoice, as a way for you to compare private loan options. The choice of lender is yours; you are also not required to select one from this list of lenders. Check the borrower requirements of the private lenders before you borrow.

FASTChoice

Due to the number of steps involved in the private loan application process, allow a minimum of 3 weeks for processing.

Some private loans allow payment for previous term charges, allow for less than half-time (6 credits) enrollment, or do not require that you are making satisfactory academic progress.

If you are having issues with your student loan lender or servicer, the Student Loan Advocate with the Minnesota Department of Commerce is here to help. To file a complaint, please visit our web page. For general questions, please contact Student Loan Advocate at jabra.kawas@state.mn.us or 651-539-1022.

This short-term loan provides financial assistance to St. Cloud State University students who have unexpected, temporary emergency expenses. Allowable expenses include auto repairs, emergency travel, medical expenses, and textbook purchases.

• Students must be enrolled at least half-time (6 credits) with no past due balance owed to the University.
• Current students must be in good academic standing with a minimum 2.00 GPA.
• Students must have at least one earned St. Cloud State credit. New entering freshmen and transfer students are not eligible for this loan during the first term of their enrollment at St. Cloud State.
• If a student wishes to borrow funds during semester break, the student must be pre-registered for the following semester.
• Students may borrow up to $600. There is an origination/processing fee for all loans included in the loan amount - $10 processing fee for loans up to $400 and $25 processing fee for loans up to $600. This fee is deducted from the loan proceeds before disbursement. Example: If you borrow $600 your loan check will be $575.
• Students may not have more than one outstanding emergency loan at any one time.  There is a 28 day waiting period from the payoff date before another emergency loan will be processed.
• Loans are due within 60 days, including weekends and holidays. Any loan not paid by the due date will be subject to a $30 late fee.
• If the loan check is not picked up from the Business Services Office (AS Building, Room 123) within five (5) business days of the check issue date, the check will be canceled. The processing fee will still be assessed.
• Funds are disbursed and repayment is managed by the St. Cloud State Business Services Office.

BESSIE E. CAMPBELL EMERGENCY LOAN APPLICATION

As families compare their options for additional funding, a home equity loan or home equity line of credit may be one to explore as well. This option allows homeowners to borrow against the equity in their home. Because the loan is secured by property, the lender's risk is low and therefore interest rates may be lower than with many other forms of consumer borrowing. Each lender determines loan terms and conditions, interest rates and repayment requirements, and the application will be completed directly through the lender. Interest may be tax deductible.