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Basics of Parent (and Graduate) PLUS Loan Processing

Basics of Parent (and Graduate) PLUS Loan Processing. Session #30544 March 20, 2012. Your Presenters. Bridgette Betz Assistant Director, Student Financial Assistance Missouri University of Science and Technology. Missouri University of Science and Technology.

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Basics of Parent (and Graduate) PLUS Loan Processing

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  1. Basics of Parent (and Graduate) PLUS Loan Processing Session #30544 March 20, 2012

  2. Your Presenters • Bridgette Betz • Assistant Director, Student Financial Assistance • Missouri University of Science and Technology

  3. Missouri University of Science and Technology • Missouri S&T (formerly University Missouri – Rolla) is one of the nation’s top technological research universities • Campus size – 7206 Students (5504 Undergraduates)

  4. Missouri S&T and Oracle • Live with PeopleSoft since July 2000 (started with v7.6) • HR, Finance, Purchasing, and Student on PeopleSoft for all University of Missouri campuses • Currently on Student v8.9 and hope to go to 9.0 by the end of 2012

  5. Overview • This presentation should provide you a look at how Missouri S&T has structured the entire PLUS loan process (both for Parents and Graduate students). • Missouri S&T directs PLUS loan borrowers to StudentLoans.gov for the application, credit check, and MPN. • Parents (for undergraduate students) and Graduate students go through the same process.

  6. Agenda/Contents • Missouri S&T PLUS Loan Volume • PLUS Loan Application and Credit Check • PLUS Loan Master Promissory Note • Import of PLUS Loan Information • Awarding and Originating PLUS Loans • Disbursing and Refunding PLUS Loans

  7. Missouri S&T PLUS Loan Volume • Beginning with AY11, Missouri S&T has packaged both Parent PLUS and Graduate PLUS loans (up to the remaining COA). • PLUS Loan volume more than doubled from AY10 to AY11, and it is still on the rise for AY12.

  8. PLUS Application & Credit Check • Borrowers are directed to Department of Education’s page – StudentLoans.gov • Log in requires SSN, DOB, and FAFSA PIN

  9. PLUS Application & Credit Check • Borrowers click “Request a Direct PLUS Loan” to begin the process…

  10. PLUS Application & Credit Check • …choose if they want to complete a Graduate or Parent application…

  11. PLUS Application & Credit Check • … and complete the four step process which includes the application and credit check • Parents can indicate (authorize) who receives any excess funds on the application and for what time period they would like the loan • Borrowers can choose how much to borrow, indicate they want the maximum offered or that they will contact the financial aid office with an amount

  12. PLUS Application & Credit Check • Parents will also be able to choose if they would like the loan deferred while the student is enrolled- this information is sent to the servicer once the loan has originated • Servicer will either automatically defer the loan or send the appropriate paperwork to the parents • Credit check is instantaneous!

  13. PLUS Application & Credit Check • If the Parent borrower is denied (based solely on their credit score), they have 3 options: • Do not continue with application • Seek an Endorser • Appeal Credit Decision • No matter what option they choose, the notice of denial is sent in a CRSP##OP file that is loaded into PeopleSoft. • Unless we know that there will be an endorser, we contact the student informing them they may be eligible for an additional unsubsidized loan (up to $4000 for freshman & sophomore, and up to $5000 junior & senior)

  14. PLUS Application & Credit Check • If the Graduate borrower is denied (based solely on their credit score), they still have 3 options: • Do not continue with application • Seek an Endorser • Appeal Credit Decision • If either Parent or Graduate borrower is approved, they have 2 options: • Do not continue with application • Continue and Complete MPN (If there is not one on file)

  15. PLUS Loan Master Promissory Note • The Direct PLUS Loan MPN can be used to make one or more PLUS loans for one or more academic years for (up to 10 years) • If the Parent has more than one student, a MPN must be completed for each child • PLUS MPN is also completed at StudentLoans.gov

  16. PLUS Loan Master Promissory Note • For Parents who seek an endorser on their loan, both the Parent and Endorser must complete a MPN • If the parent wishes to take out an additional PLUS loan they will have to complete a new MPN, since the first will be marked as Inactive and can only be linked to one loan

  17. PLUS Loan Master Promissory Note • Once a borrower completes the MPN, we are sent a CRPN##OP file that is loaded into PeopleSoft. • This file will update the promissory note status if we have an originated loan Financial Aid > Loans > Direct Lending Management > View Loan Processing Actions (Loan Status Summary Link)

  18. Import of PLUS Loan Information • Missouri S&T uses EdConnect to pull in federal files (including PLUS loan files) from the SAIG Mailbox • We receive the CRSP##OP (PLUS Loan Application File) daily from COD • The file is loaded into PeopleSoft the same as any other COD file Financial Aid > File Management > COD Full Participant > Import COD Response Data

  19. Import of PLUS Loan Information • Missouri S&T uses PS Query to see who and what was sent in each file • The tables to query: • SFA_COD_DOCUMNT – Pulls the SP document ID & Date/Time file inbounded • SFA_COD_STUDENT – Student Name & SSN • SFA_COD_AWARD – Loan amount, award year, credit decision info, & Refund info • SFA_COD_BORROWR – Parent citizenship, Name, Email, Date of birth & SSN • SFA_COD_BOR_ADR – Parent Address

  20. Import of PLUS Loan Information • The data we use: • Parent/Student Social Security Numbers • Parent Date of Birth • Parent Address • Refund Option (Borrower or Student) • Credit Decision • Endorser Option • Loan Amount (Max Loan or specific loan amount) • Period of Loan (options can be adjusted on COD)

  21. Awarding & Originating PLUS Loans • Once we receive an approval, we will accept the loan for the amount the borrower requests, or contact if there is no amount listed • For Parent borrowers, we check NSLDS to verify the parent is not in default on Federal loans (the FAFSA and the PLUS loan application process does not do this) • The CRSP##OP file information is used to create a unique emplid (if not already in the system) for the parent and a relationship is created between the parent and student and between the student and parent. Campus Community > Personal Information > Biographical > Relationships > Relationships

  22. Awarding & Originating PLUS Loans • If a parent or graduate student has an endorser on the loan, then the information will come in the CRSP##OP file, still marked as denied, but with a maximum amount that the endorser will agree to borrow • The loan can be awarded up to the endorsed amount • If the credit decision is appealed and approved a CRCO##OP file will be generated and is loaded with all other COD files

  23. Awarding & Originating PLUS Loans • The PLUS loan is then originated through the normal origination process • For Parent PLUS loans, the emplid and refund option must be entered on the originated loan Financial Aid > Loans > Direct Lending Management > Manage Direct Loan Application

  24. Awarding & Originating PLUS Loans • Once the origination is sent to COD, it will match with the credit check (which is good for 90 days), and MPN. • Missouri S&T originates and sends COD files through EdConnect daily. • The next day, we will receive a CRDL##OP file that has all of the Direct Loan responses from the previous day.

  25. Disbursing & Refunding PLUS Loans • Once the CRDL##OP file is loaded, the MPN is on file, and the credit check is still good, we can disburse the PLUS loan to the student’s account through the daily disbursement process. • We currently do not control the order of disbursements, so the PLUS loan may or may not be the source of a refund. • If the Parent PLUS loan produces excess funds, Student Financials has their side set up to look at the refund option on the origination for that loan.

  26. Disbursing & Refunding PLUS Loans • If the refund goes to the parent borrower: • The parent will receive a check for the refund to the permanent address that was provided on the application for the PLUS loan • If the refund goes to the student or the graduate borrower: • The student has the option to receive a direct deposit or a check for the difference

  27. The Final Process

  28. Questions?

  29. Contact • Bridgette Betz • Assistant Director • Student Financial Assistance • Missouri University of Science and Technology • E-mail: berry@mst.edu

  30. This presentation and all Alliance 2012 presentations are available for download from the Conference site atwww. heug.orgwww.psugonline.orgwww.federalusersnetwork.com Presentations from previous meetings are also available

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