Loan Processes
Steps involving StudentAid.gov will require a Department of Education FSA ID.
How to create an FSA ID
Procedure
- Accept loan(s) in Financial Aid Self-Service
- Complete Loan Entrance Counseling
- Complete a Subsidized/Unsubsidized Master Promissory Note (MPN)
Additional Information
Loan Entrance Counseling is an online tool to ensure you understand your obligation to repay loans you agree to borrow and is a requirement to borrow federal loans.
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loans and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loans and is required to borrow federal loans. You can utilize the same MPN for up to 10 years.
Once complete, the items above will be automatically transmitted to Cal Lutheran for processing.
Overview
Students are advised to exhaust their Direct Unsubsidized Loan eligibility before applying for a Direct Graduate PLUS Loan, as this loan requires a credit check and has a higher interest rate than the Direct Unsubsidized Loan interest rate.
Procedure
Please input a specific dollar amount when completing the online application. If you need assistance determining the amount to borrow please feel free to contact Student Accounts.
- Complete an online Graduate PLUS Application
- Log in to StudentAid.gov to start the application
- Request a specific dollar amount and loan period within the application
- Authorize a credit check with the Department of Education within the application
- Complete a PLUS Master Promissory Note (MPN)
- Complete Graduate Loan Entrance Counseling
- Once completed, you will receive an email (via your Cal Lutheran email) from the Office of Financial Aid showing that your Graduate Plus loan has been added to your financial aid package. You will need to then accept the loan(s) through your Financial Aid Self-Service portal
If you receive a denied credit decision
If your credit is denied, you may choose to add a credit-worthy endorser or appeal the credit decision. See below for what is needed for each option.
- How to add an endorser
- Find a credit worthy endorser and provide them with your PLUS loan reference number
- The endorser must request an FSA ID with the Department of Education. They will then use that FSA ID to sign into www.Studentaid.gov
- Have the endorser complete an endorser addendum
- Complete a new PLUS MPN to include your endorser
- How to appeal your credit decision
- Log in using your FSA ID and follow the on-screen instructions
- Additional Requirement: PLUS loan applicants who successfully appeal their credit decision or obtain an endorser
will be required to complete PLUS Credit Counseling.
- Complete online Plus Credit Counseling
- This will need to be completed before your loan can disburse. Please note this counseling must be completed in one sitting as there is no ‘save progress’ function.
- For questions about whether you need to complete this counseling or not please contact the Student Loan Support Center at 800-557-7394.
- Complete online Plus Credit Counseling
Procedure
- Accept loan(s) in Financial Aid Self-Service
- Have your parent complete an online Parent PLUS Application
- The parent will need to create or use their existing FSA ID to log in
- The parent will request a specific dollar amount and loan period within the application
- The parent will authorize a credit check with the Department of Education within the application
- Have your parent complete a PLUS Master Promissory Note (MPN)
Determining what amount to request
Within the PLUS application, you have the option to either "specify a loan amount" or "borrow the maximum Direct PLUS Loan amount for which I am eligible, as determined by the school".
- If you specify the amount that you would like and want to cover a specific balance, take into consideration the origination fee percentage that is taken out by the Department of Education prior to disbursement.
- If you select the maximum amount option, be advised that we will increase the loan amount up to the maximum amount allowable which is the total cost of attendance minus any other aid the student is receiving. If you applied for the maximum allowable amount but do not want the entire amount, please complete and submit a Loan Change Request Form before the start of the term.
- Selecting any other option besides the two above may result in processing delays and we may require further clarification before processing the PLUS loan.
If the parent receives a denied credit decision
If the parent's credit is denied, the parent may choose to add a credit-worthy endorser or appeal the credit decision or request an Additional Direct Unsubsidized Loan for the student.
See below for your options:
- How to add an endorser
- Find a credit worthy endorser and provide them with your PLUS loan reference number
- The endorser must request an FSA ID with the Department of Education. They will then use that FSA ID to sign into www.Studentaid.gov
- Have the endorser complete an endorser addendum
- Have the parent complete a new PLUS MPN to include your endorser
- How to appeal your credit decision
- Have the parent log in using your FSA ID and follow the on-screen instructions
- How to receive an Additional Federal Direct Unsubsidized Loan for the student
- Once the denied Parent Plus loan is processed by the Financial Aid Office, an additional Unsubsidized Loan will be added to the aid offer and the student will be sent a revised aid offer notification email via their Cal Lutheran email address
- The student must accept the Additional Unsubsidized Loan in Financial Aid Self-Service
Additional requirements for options 1 and 2
PLUS loan applicants who successfully appeal their credit decision or obtain an endorser will be required to complete PLUS Credit Counseling.
- Complete online Plus Credit Counseling
- This will need to be completed before your loan can disburse. Please note this counseling must be completed in one sitting as there is no ‘save progress’ function.
- For questions about whether you need to complete this counseling or not please contact the Student Loan Support Center at 800-557-7394.
Timeline
All application steps must be completed at least 30 business days prior to the start of a term which the student wishes to receive aid for. This includes:
- Filing a FAFSA
- Submitting a Grad or Professionals Financial Aid Application (if applicable)
- Submitting any Missing Information requests
- Completing Verification (if applicable)
- Accepting the loan(s) in Financial Aid Self-Service
- Completing the loan process: Entrance Counseling and Master Promissory Note
- Completing a PLUS application online (if applicable)
All loans require processing time before the funds will be ready to disburse. Students may receive loan funds for a term only if they are currently enrolled in that term at least half time and loan funds disburse prior to end of that term. If completion of required steps occurs after the 10 business days prior to the end of the term, the Office of Financial Aid cannot guarantee that loan(s) will be processed before the end of the eligible timeframe.
Loan Disclosure
Please note that the borrower has the right to cancel a portion of or the entirety of their loan within 14 days of either the first day of class or the disbursement of the funds to the student’s account, whichever is later. After which time it is the borrower’s responsibility to return any unwanted funds to the lender or federal loan servicer. To request a cancellation, please complete and submit a Loan Change Request Form within the appropriate timeframe.