new students

IMPORTANT DETAILS FOR NEED BASED & MERIT RECIPIENTS 2009-2010

Federal Parent Loan for Undergraduate Students (PLUS)

If you are an undergraduate student in good academic standing and enrolled at least half-time, your parents can apply for the PLUS. The annual loan limit is the financial aid budget for the cost of attending GW (tuition, fees, room and board, books and supplies, transportation, and certain other education expenses) minus financial aid (including the amount of a subsidized or unsubsidized Federal Stafford Loan borrowed by the student). Need is not a factor, but the lender is required to perform a credit check and a good credit history is needed for approval.

The interest rate for the PLUS is set at 8.5%. The PLUS loans are subject to an origination fee of up to 3% and a default prevention fee of up to 1%; all fees are deducted proportionately from each disbursement.  Refer to the Choosing your Lender link on the left for helpful information regarding lender selection for PLUS Loan. Federal regulations require multiple disbursements; normally, half of the loan proceeds are paid at the beginning of each of the fall and spring semesters. Funds arrive by Electronic Funds Transfer (EFT) or by check co-payable to the school and the parent borrower. When the University receives a PLUS check, we forward it to the parent for endorsement; when the parent returns the check to us, GW endorses it and applies the funds to the student’s account. If the check is not returned, we will cancel the loan certification with the lender/guarantor. The PLUS repayment begins 60 days after the last disbursement (for the current academic year) by the lender and there is no grace period. The repayment period is up to 10 years; prepayment is permitted at any time without penalty. If a parent is not approved for the PLUS, the student then has the ability to seek additional loan funds in the unsubsidized Federal Stafford Loan program.  Refer to the unsubsidized Stafford Loan section. 

Application processes for the 2009-2010 academic year will require that all PLUS applicants submit a PLUS Master Promissory Note (PLUS MPN) and PLUS Loan Data Form. The use of the PLUS MPN is mandated by federal guidelines for the program.

Information will be mailed to the parents of all entering students shortly after the student has accepted admission to GW. It is also available on request from the Office of Student Financial Assistance (OSFA).

PLUS Loan 

As a first time PLUS borrower, you may want to consider taking advantage of the electronic application process outlined below:

• Access our web site at http://gwired.gwu.edu/finaid and click on New Undergraduate Students.
• Select the Loans link on the left hand side and scroll down until you reach the PLUS Loan section. Click on “Apply for a PLUS Loan.”
• This will take you to the Sallie Mae web site where you may select one of the lenders.
• Should you decide to select a lender here, the directions will prompt you to first complete and electronically sign the PLUS Master Promissory Note. We will be notified that you have completed the promissory note and update the student’s records accordingly.
• Finally, you will submit the University’s PLUS Loan Data Form to the Office of Student Financial Assistance at GW.

The above process will allow us to certify the PLUS electronically and the funds will come via Electronic Funds Transfer (EFT) and be automatically credited to the student’s account and thus avoid the delays in mailing the check back and forth for the necessary endorsement.

NOTE: Parents can select any lender they wish to process the PLUS. If it is not one of the lenders from which we accept an electronic application, it will be necessary to submit the following to our office:

• A completed original three part paper copy of the PLUS Master Promissory Note (MPN) which can be obtained from your lender. Since the University requires the original paper copy, you cannot complete the MPN on-line.
• A completed GW PLUS Loan Data Form.