The Federal Direct PLUS Loan is a federal loan for parents of dependent undergraduate students or Graduate students pursuing an advanced degree. It is a fixed interest rate loan and has minimal credit requirements. Parents of dependent undergraduate students or Graduate students may borrow up to the cost of attendance minus any other financial aid the student receives. For more information on terms, interest rates, and repayment options, please go to the Federal Student Aid website.

Step 1: PLUS Loan Application

• The parent that plans to borrow must have an FSA User ID (used to sign the FAFSA)
  • To create an FSA User ID go to ed.gov
  • Graduate students use the FSA User ID and password they already have created
• To login go to studentloans.gov and enter the applicable FSA User ID and password.
• Select "Apply for a Direct PLUS Loan".
• Select "Start" next to Direct PLUS Loan Application you want to apply for.
• Complete the required fields — School & Loan Info, Borrower Info, Review and Credit Check & Submit.
• Note: Please make sure you select a loan for the 2019-2020 year.

Step 2: PLUS Loan Master Promissory Note

(Complete only if approved for a PLUS Loan, and you wish to take the loan.)

• The borrower must go to studentloans.govand log in using the  FSA ID.
• Select "Complete Loan Agreement (Master a Promissory Note)."
• Select "Start" next to PLUS MPN for Parents."
• Complete the required fields: Information, References, review & Edit, and Sign & Submit.

PLUS Loan options

Loan amount: When completing the Direct Federal PLUS Loan application, borrowers are given the option of entering a specific loan amount, or can select the “maximum” option.

Things to consider when determining the amount to borrow:

• The government charges a 4.248% fee on PLUS Loans. If applying for the exact balance, consider factoring in this fee to avoid a shortage. The origination fee will change effective 10/01/2019.
• Only borrow what you need. The current interest rate on the PLUS Loan is 7.08%. This rate will remain in effect through July 1, 2020.
• Maximum loan: If the "maximum amount" option is selected on the Federal Direct PLUS loan application, Norwich Financial Aid will award to maximum amount allowed in the student budget, which is  above estimated billed costs, allowing students to borrow for travel, books, etc.

Denial Options

If denied the PLUS loan there are several options of how to move forward.

• Pursue endorser: Re-apply with an endorser (cosigner).
• Appeal: Appeal the reason your credit was denied to the Department of Education.
• Student Loan eligibility increases:Undergraduate dependent student's eligibility for Federal Direct Unsubsidized loan increases by $4,000 (for Freshmen and Sophomores) or $5,000 (for Juniors and Seniors) if a parent is denied and chooses not to appeal the decision.
• Choose to not pursue the PLUS loan or  additional Federal Direct Unsubsidized Loan.

Alternative loans, also commonly referred to as private loans, are commercial loans offered by banks, credit unions, and other private lenders to assist in covering the costs of college beyond what financial aid has been provided.

How they differ from federal loans:

• These loans are not entitlement loans. Meaning both the student and co-signer will be subject to a credit check.
• Interest rates on Alternative/private loans may be fixed or variable, higher or lower than the federal rate.
  • There are several places to find the current rates for Prime, T-bill, LIBOR and the other instruments that lenders use to set their interest rates, but we suggest you bookmark bankrate.com.When you visit, there will be many indexes listed. The three main indexes for private loans are: Wall Street Journal (WSJ) Prime, 91Day T-bill, and the one-month LIBOR plus a certain percent.
• There are no interest rate caps on these loans. While alternative/private loans typically defer payments while students are in school and offer a grace period similar to federal loans, some may require payment while the student is still attending school. Read and understand the loan conditions and terms prior to signing the promissory note.
• The funds students borrow from alternative or private lenders are not eligible for federal repayment or forgiveness programs.
• The application process can be quite lengthy. Students are encouraged to apply 4-6 weeks in advance of when the funds are needed.

Self Certification Form

As part of the alternative loan application process, students need to complete a Self-Certification form. This form must be completed for loans to be approved. All Self-Certification forms should be sent to the specific lender and not the Office of Financial Aid. The Self-Certification form requires students to report the cost of attendance and estimated financial assistance. This information can be found on your award letter or you may contact the Office of Financial Aid at 802-485-2850 to obtain this information. Most lenders will provide a form to collect the specific information they are looking for.

Download the Self Certification form. This form is also available at the Office of Financial Aid.

Active Acceptance of the Loan

Upon approval of an alternative loan, student will be required to "actively accept" the terms of the loan before the lender will notify the school . The terms of the loan will be provided in a Loan Approval Disclosure. Lender's will provide instructions of how to "accept" the loan terms, which can be found on the approval disclosure form. This form should be returned to the lender as soon as possible.

Lenders Used in Previous Years

Norwich University is committed to providing students with the best possible information in order to assist in the selection of a lender. These lenders have provided loans to Norwich students in previous years. Students are not limited to one of these lenders. If a student wishes to choose an alternative loan with any other lender, Financial Aid will process the loan. Norwich University does not receive any monetary or other incentives for having these lenders provided here. The lenders that are provided met the following criteria at the time the list was created:

• The lender offers benefits to students in the form of fee reductions, interest rate reductions, or other benefits.
• The lender has demonstrated over time that they provide excellent customer service to students.
• The lender participates in electronic processing as well as paper processing, making it easy for the student to apply for and receive their loan funds.

If it is decided that an alternative loan is the right choice, Financial Aid encourages students and families to explore each of the loan programs to determine which one best suits each individual's needs.

Alternative Loan Comparison Tool

Norwich University is providing a tool called FAST Choice Solutions if assistance is needed in selecting a lender for an alternative loan. This tool is provided by Great Lakes Higher Education Assistance Corporation (GLHEAC) to assist NU students in selecting a lender and provide the ability to compare the benefits and terms of each loan program to assist students in making the best choice.