In compliance with the New York State Attorney General's Code of Conduct, the process through which recommended lenders are selected is fully disclosed through SUNY Fredonia's Request for Information (RFI) process.
Click Here to view the criteria used (RFI) to determine SUNY Fredonia's Recommended lender list.
How do my parents apply for a Parent Loan?To apply for a Parent (PLUS) Loan at SUNY Fredonia for the 2008-09 academic year, the parent borrower must access our "Recommended Lender" comparison list below via the "Apply On-Line for PLUS" link to initiate an on-line credit check analysis that will be performed by the New York State Higher Education Services Corporation (NYSHESC). If the parent credit check is approved, the parent borrower will be prompted to begin the on-line PLUS Electronic Master Promissory Note (e-MPN) application process. Once completed, the Financial Aid Office will be notified of the Parent Loan amount that has been requested. The Financial Aid Office will then certify the amount of the loan that the parent borrower will be eligible for and subsequently transmit this information to NYSHESC for final guarantee. For more information regarding the Parent (PLUS) Loan and other financing options view the Alternative Options Guide.
What if my Parent Loan is denied? If the on-line parent credit check is denied the student may be eligible for additional Unsubsidized Stafford loan funds. To pursue this option, the parent borrower would indicate at the time of the on-line denial that their son/daughter would like to borrow additional Unsubsidized Stafford Loan funds. The Financial Aid Office will then contact the student borrower in writing to determine the amount of funds that he/she would like to borrow due to the Parent Loan denial.
What requirements do my parents have to meet? Parents of dependent students are eligible to apply for a PLUS Loan through the Federal Family Education Loan Program (FFELP). Parents with a good credit history (no debt to income calculation used; only no recent delinquencies, charge-offs, defaults, etc.) can borrow a PLUS Loan to pay for educational related expenses. You and your parents must also meet other general eligibility requirements for federal student financial aid.
How much can my parents borrow? The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you are awarded. For example, if the institutional cost of attendance is $17,200 and you receive $4,200 in other financial aid, your parents can borrow up to $13,000.
Who receives my Parents' Loan funds? SUNY Fredonia's Office of Student Accounts will receive the money in at least two installments. No one payment may exceed half of the loan amount. Your parents will be required to endorse a disbursement check and send it back to the school. The money will then be applied to your tuition and fees, room and board, and other school charges. If any loan money remains, your parents will receive the amount as a check or in cash. Any remaining loan money must be used for your education expenses.
What's the PLUS interest rate? The interest rate will be fixed for PLUS Loans that are disbursed on/after July 1, 2008 and will carry an interest rate of 8.5%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid off.
When do my parents begin repaying the loan? Generally, the first payment is due within 60 days after the final loan disbursement for the year. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made, and your parents will begin repaying both principal and interest while you're in school.
Click here to Apply On-Line for PLUS.