PLUS Loan Application

• This loan can be used to cover your student’s educational expenses that aren’t covered by other forms of financial aid. This loan can also be used to cover your “Student Aid Index" (SAI)  as indicated on your student’s financial aid award offer.
• Repayment can be deferred until your student leaves school.
• This loan has flexible repayment options.

We encourage you to read all about the PLUS Loan before applying. For information about interest and fees, deferment, repayment, and much more, visit the Federal Student Aid website.

• Your Dependent Student must be enrolled at least half-time in a degree-granting program
• A valid student FAFSA is required
• If the student is selected for verification, that process must be completed
• Student must be meeting Satisfactory Academic Progress (SAP)
• Parent may select to have repayment deferred while student is in school
• Funds are sent directly to the school

In some cases, you won’t be able to complete the online application

• If you are not a U.S. citizen or eligible non-citizen, 
• Have a defaulted federal education loan
• Have filed bankruptcy that prevents incurring new debt
• Owe an overpayment of a federal education grant received in error

If this happens, your student, if eligible, may be considered for additional Federal Direct Unsubsidized Loan funds. Please complete the Ineligible PLUS Borrower Form to let us know if you are ineligible for a PLUS Loan. The form should be submitted for each parent listed on the FAFSA.

As a parent, the maximum you may borrow for each undergraduate student at UC Berkeley is determined by the Financial Aid and Scholarships Office and is listed on your student’s financial aid offer.

By borrowing wisely, repayment will be manageable!

Note: You may not have to borrow as much as what is offered. Review your student’s actual expenses and your finances carefully. Use this review to help you determine the least amount you need to borrow. Remember to consider any cash payments you can make from your current income or savings.

Apply as soon after April 8th as possible, each year for the upcoming academic year, and only after your student has received an official offer of financial aid that includes a Parent PLUS Loan.

For summer PLUS Loans, apply as soon after March 30 as possible after your student receives an official summer aid offer that includes a Parent PLUS Loan. Please Note: Summer PLUS Loans require a new application.

The final application deadlines, meaning that all required online processes must be completed, are listed below:

Attending Fall-only: November 30

Attending Fall and Spring or Spring-only: April 30

Attending Summer Sessions:

Repayment begins 60 days after the loan is paid out in full. For fall/spring loans, this typically means repayment begins in late February.

Repayment can be deferred while your student is enrolled at least half-time, however interest will continue to accrue. To defer repayment, you must contact your loan servicer.

Here is more information about repayment from the Federal Student Aid website.

Within 120 Days of Disbursement

You can cancel or reduce a paid loan through a request to the school for up to 120 days from the original disbursement date. It is important to remember that a reduction or cancellation of a paid PLUS loan will create a charge on your student’s account that must be paid within no more than 30 days.

If you reduce your loan using these directions, send your payment to UC Berkeley once you see the charge on the student account.

To reduce or cancel a federal PLUS loan, the PLUS parent borrower should open a case with the requested change.

When you cancel your loan through the school by reducing the amount, a charge will be applied to your student account within 2 to 3 business days, which may create a balance due. You are responsible for paying this balance. Do not send a payment to your loan servicer if you are reducing the loan through the school.

More Than 120 Days After Disbursement

If it has been more than 120 days since your loan disbursement date, you cannot cancel your loan. However, you can make a payment to your servicer. Locate the servicer’s contact information by logging into your studentaid.gov account.

In order to ensure that your payment is applied to a particular loan, you must include a letter with your payment that has specific instructions about how to apply your payment.

For example: “Please apply this $200 payment to my unsubsidized loan first disbursed on 01/10/09, paying off any accrued interest and then applying any remaining payment to the principal of that loan.”

f you have not yet set up your FSA ID and/or need to replace an existing Federal PIN, please visit the FSA ID website before visiting the Federal Student Aid website.

Be sure to choose the correct period for the loans when you complete the PLUS application.

• If you want a fall or spring PLUS loan, then choose the loan period from August to May.

• If it is a PLUS loan for the summer term, then choose the loan period from May to August.

Step 2.

• Choose your principal repayment deferment option. It will cost you less overall if you choose not to defer principal repayments.

• Choose the Other Charges option: If you authorize, PLUS funds will be used to pay any existing charges on your student’s Cal Central account.

• Choose a Credit Balance option. Most parents choose “The Student” because this is the most efficient way to get funds to where they are needed. If you choose “Me,” any refund will be issued via paper check and mailed to you (the parent) at the address on your PLUS application.

Step 3.

• Enter a specific amount in the Loan Amount Requested section to minimize your borrowing. If you do not provide a specific amount, we will not process your application and you will be required to submit a new application with an amount.

• Choose to borrow the maximum, UC Berkeley will determine the maximum amount parents can borrow.  Additional PLUS loans will be processed anytime your maximum eligibility increases. This happens automatically, and will result in higher debt.

• If you choose “I don’t know,” we will not process your application and you will need to submit a new PLUS application.

• For Loan Period, be sure to choose the correct period for the loans when you complete the PLUS application.

• If you want a fall or spring PLUS loan, then choose the loan period from August to May.

• If it is a PLUS loan for the summer term, then choose the loan period from May to August.

Continue through the application. You will see your approval status immediately.

• Click on the “Complete MPN” link and follow the directions.  Take some time to read all the small print as it contains important information about the interest, fees, your repayment obligations, and your borrower rights.
• Once you electronically sign your MPN, it will be transmitted to UC Berkeley electronically and linked to your application.
• The whole process will take a minimum of three business days, resulting in loan payments to Cal Central within five business days if all other eligibility requirements are met.

If you are not approved, you will be presented with some options.  You can:

Option 1. Appeal the decision

• If you get an adverse credit result, you may be able to file an appeal to ask for additional review.
• You can file an appeal online.  If you can’t file online, you may call 1-800-433-3243
• If your appeal is approved, you will need to complete PLUS Credit Counseling before the loan can be disbursed.

Option 2. Secure an endorser

• If you have decided to pursue an endorser, the endorser will complete the “Endorse Direct PLUS Loan” section at studentaid.gov. 
• Borrowers who required an endorser for approval of the PLUS loan must submit the following before the PLUS loan can be disbursed
  • PLUS MPN for Parents
  • PLUS Credit Counseling

 Option 3. Not pursue a Direct PLUS loan at this time

We will zero out your Parent PLUS Loan and offer your student additional Federal Direct Unsubsidized Loan if you choose this option.

Option 4. Undecided

No action will be taken by the school.  Note:  If you change your mind about how to proceed after you have submitted your response, please let us know by contacting Cal Student Central.  The case you submit should include your name and contact information, as well as your student’s name and the student ID number.