Northern Arizona University

*For information regarding the Graduate PLUS Loan please click here.

What is the PLUS loan?

The Parent PLUS Loan for Undergraduate Students is available to parents of dependent undergraduate students to assist in paying for educational costs after other financial aid has been awarded. The funds are borrowed directly from the U.S. Department of Education.  

·         Students will see an award named 'PLUS Loan - Offered' on his/her Award Letter. This is the maximum amount a parent may be eligible to borrow.

How does my parent apply for the PLUS Loan?

1.       Complete the Parent PLUS Loan Application.  This application can be found at nau.edu/finaid under ‘Printable Forms’.

2.       Submit signed form:

·         Mail:  NAU Office of Financial Aid
           PO BOX 4108
           Flagstaff, AZ 86011-4108                                 

·         Fax: (928) 523-1551

·         Email: Financial.Aid@nau.edu

3.       Credit check is processed by the Department of Education. 

4.       E-mail/Letter notification sent to parent and student regarding the credit decision.  Upon NAU’s receipt of the credit decision, parents and students will receive correspondence from our office advising them the next steps in the process. 

A.       If approved, a Master Promissory Note (MPN) will be required in order to release funds.  The MPN must be completed by the same parent who completed the Parent PLUS Loan Application.  The MPN can be submitted at any point in the process.

·         To fill out a Parent PLUS MPN, go to dlenote.ed.gov. Please select ‘Complete New MPN for Parent PLUS Loans’ option. 

·         The parent will sign the MPN electronically with his/her PIN.   If a new PIN is needed or forgotten, please visit:  pin.ed.gov 

B.       If denied, the Department of Education will send the parent documents regarding the denied PLUS Loan Application.  These documents will include endorser/co-signer information along with an appeal form.  If your parent will be seeking an endorser/cosigner or will be appealing the credit decision, please contact the Office of Financial Aid at (928) 523-4951. 

·         If your parent will not be seeking an endorser/cosigner or appealing the credit decision, the student may be eligible for an additional Unsubsidized Direct Loan.  Please see page 2 of the PLUS Loan Application for more information.

What are the terms of the PLUS Loan?

• The annual interest rate is variable, however will not exceed 9%. As of July 1, 2006 the fixed interest rate for PLUS loans is 7.9%. For current interest rates on the PLUS Loan, please visit ed.gov/offices/OSFAP/DirectLoan/calc.html  
• A processing fee of 4% is assessed by the Federal Loan Processor and deducted at the time of funds being released.
• Repayment begins 60 days after the final disbursement of the academic year.  If requested, the Department of Education offers other repayment options.  Contact the Federal Direct PLUS Loan Servicer at 1-800-848-0979 for detailed information.
• The parent is obligated to repay the full amount of the loan and accrued interest. Interest begins to accumulate immediately upon initial release of funds
• After credit approval and receipt of the Parent PLUS MPN, funds are released directly to the student account to cover any current charges.  After tuition, fees, housing and other current charges are fully paid, any remaining PLUS Loan funds will automatically be deposited into the student’s checking or savings account.  If direct deposit information has not been submitted, a check (made payable to the student) will be mailed to the ‘Refund Address’ listed on LOUIE (nau.edu/LOUIE ).

If you have questions regarding the PLUS loan, please contact the NAU Office of Student Financial Aid at (928) 523-4951 or by email at Financial.Aid@nau.edu

PLUS Loan for Graduate Students

This is a PLUS loan that is available to graduate students to fund his/her education.  This loan does not involve a parent borrower. Graduate students wishing to borrow a Grad PLUS loan must complete the appropriate paperwork: 

1.       A Free Application for Federal Student Aid (FAFSA) must be submitted.  To complete the FAFSA, please visit  fafsa.gov

2.       Complete the Graduate PLUS Loan Application.  This application can be found at nau.edu/finaid under ‘Printable Forms’.

3.       Submit signed form:

·         Mail:  NAU Office of Financial Aid
           PO BOX 4108
           Flagstaff, AZ 86011-4108                                 

·         Fax: (928) 523-1551

·         E mail: Financial.Aid@nau.edu

4.       Credit check is processed by the Department of Education. 

5.       E-mail/Letter notification sent to student regarding the credit decision.  Upon NAU’s receipt of the credit decision, the student will receive correspondence from our office advising the next steps in the process. 

A.      If approved, a Master Promissory Note (MPN) will be required in order to release funds.  The MPN must be completed by the student and can be submitted at any point in the process.

·         To fill out a Graduate PLUS MPN, go to dlenote.ed.gov. Please select ‘Complete New MPN for Student Loans’ and choose the ‘Graduate PLUS’ option. 

·         The student will sign this electronically with his/her PIN.   If a forgotten PIN is needed, please visit  pin.ed.gov 

B.      If denied, the Department of Education will send the student documents regarding the denied Grad PLUS Loan Application.  These documents will include endorser/co-signer information along with an appeal form.  If the student will be seeking an endorser/cosigner or will be appealing the credit decision, please contact the Office of Financial Aid at (928) 523-4951. 

·         If the student will not be seeking an endorser/co-signer or appealing the credit decision, students have the option of considering an alternative/private loan.  Alternative loans are private educational loans offered by banks and education lenders to fund education expenses.  For more information about alternative loans go to nau.edu/finaid/types_of_aid/altloan.html .  

If you have questions regarding the PLUS loan, please contact the NAU Office of Student Financial Aid at (928) 523-4951 or by email at Financial.Aid@nau.edu