Federal Stafford Student Loan - Valencia College

2008-2009
Federal PLUS Loan
Parent Loan for Undergraduate Students
Information and Application Materials
Loan Application – Important Dates
Term
Priority Date to submit for term
Fall 2008 Nov 8, 2008
Spring 2009 Mar 28, 2009
Summer 2009 Jul 2, 2009
PLUS APPLICATION CHECKLIST
You must complete ALL these steps before a loan will be processed
Help your student apply for all types of financial aid using the Free Application for Federal Student Aid. Refer to
the Valencia Financial Aid website for complete instructions.
Read this brochure. You will need this information.
Complete the Federal Parent Loan Program Application Request Form.(http://www.valenciacc.edu/finaid/what_new.cfm)
Complete the Federal Parent Loan Master Promissory Note.( http://www.valenciacc.edu/finaid/what_new.cfm )
Submit the Federal Parent Loan Program Application Request Form and the Promissory Note to any of the
Valencia Answer Centers or mail it to the address below.
Visit the Answer Center if you have trouble completing these steps.
General Information and Eligibility
The Parent Loan program allows the parent of an undergraduate, dependent student to borrow directly from a participating lender.
It is a federal Title IV financial aid program, so all federal regulations associated with Title IV programs apply.
These are federal LOANS that you must repay, even if your student doesn’t complete the term, or doesn’t graduate. Repayment
must begin within 60 days after the loan has been fully disbursed.
Financial need is not a requirement for the Parent Loan, however, we require your student to complete the application process
outlined for all financial aid recipients before you decide that a Parent Loan will be needed. The basic eligibility requirements for all
Title IV financial aid programs apply to the Parent Loan program. Further information about the application process and the basic
eligibility requirements may be found in the Valencia Community College Financial Aid User’s Guide on our website at
http://www.valenciacc.edu/finaid/.
Valencia Community College
Financial Aid Services 4-17
PO Box 3028
Orlando, FL 32802

How much can I borrow?
Loan maximums depend upon four things:
1. Valencia’s Estimated Cost of Attendance
2. The amount of grant, scholarship or other assistance your student will receive, including resources such as the
Florida Pre-paid program, VA benefits, or other third party billing arrangements
3. The total amount you have borrowed previously from parent loan programs
4. Whether your student enrolls as a part-time or a full-time student
You will be notified if you do not qualify for the full amount you have requested.
What are the qualifications?
1. You must be the parent of a dependent, undergraduate student.
2. Your student must be enrolled in at least 6 credit hours, required for the degree in which he/she is enrolled,
and be meeting Satisfactory Academic Progress requirements.
3. Your student must meet the basic eligibility requirements for all Title IV financial aid programs.
4. Your student must first apply for other Title IV financial aid programs by completing the Free Application for
Federal Student Aid.
5. You cannot have adverse credit on your credit report.
6. You must apply while the student is still enrolled in classes at Valencia.
When will I have to repay my loan?
Repayment of principal and interest will begin within 60 days after your loan has been fully disbursed.
It is very important that you understand how much you will be expected to pay each month. A repayment chart can
be found in this document. We also encourage you to consider whether you will need to rely on future Parent Loans,
as your monthly payments will increase with each loan you borrow.
Sample Repayment Chart - 10 Year Repayment @ 6%*
Amount borrowed
Monthly Repayment
Up to $4,000 $ 50
$10,000 $111
$15,000 $167
$20,000 $222
$25,000 $278
$30,000 $333
*Interest rates may be variable when your loan enters repayment. This chart represents typical examples of
repayments. Your actual repayment amount will be computed by your lender and may vary.
Your Master Promissory Note
Your Master Promissory Note (MPN) is a legal document on which you agree to repay your loan according to its terms.
You may have already completed your MPN online at your lender’s website. Or, you may choose one of the lenders
on our suggested Lender List and submit your completed MPN to Valencia. We will forward our certification of your
eligibility electronically and mail your MPN to your lender. Be sure you complete your Master Promissory Note in its
entirety. Print clearly using blue or black ink. Sign it carefully. Do not use correction fluid.
If there are any problems with your loan or your Master Promissory Note, you will be contacted by your lender. Make
sure you have used your correct mailing address and telephone number.

What Happens Next?
1. Your loan eligibility will be determined. If you chose one of our preferred lenders, your information will be
transmitted electronically by Valencia to the Florida Guarantee Agency and your lender. Your Promissory Note will
be forwarded to your lender for their approval, if necessary.
2. The amount of your loan will be based on the enrollment plans you listed on your PLUS Loan Request form. If
your student enrolls for fewer hours than planned, your loan amount could be reduced or cancelled. Your student
must enroll for a minimum of 6 credit hours (required for the program in which he/she is enrolled) each term
for you to receive a loan.
3. Your lender will check your credit and will issue the final approval of your loan once they receive both the
guarantee commitment and the Promissory Note. If your loan is denied for adverse credit history, the lender will
contact you.
4. You will receive a Notice of Loan Disclosure statement from your lender once the loan is approved. Please check it
for your approximate disbursement dates.
5. Your student must maintain half-time enrollment (at least 6 credit hours) and be meeting Satisfactory Academic
Progress requirements for the duration of your PLUS loan period. No loan proceeds will be sent if your student is
not enrolled at least half-time or fails to meet the Satisfactory Academic Progress requirements found in Valencia’s
Catalog or on our website at http://www.valenciacc.edu/finaid/programs/satisfactory_progress.cfm.
6. Your lender will forward the funds either by check or electronic funds transfer (EFT) to Valencia’s Financial
Services office, made payable to you. Valencia will confirm that your student still meets eligibility requirements
and forward the check to you at the address you have provided us.
Important
Your student will not be able to charge tuition or
books against your PLUS loan. However, Valencia
does offer a Tuition Installment Plan you may access
while you are waiting for your PLUS loan check.
To apply, have your student go to:
http://www.valenciacc.edu/finanserv/TIP-
TuitionInstallmentPlans.cfm