Basics of Parent (and Graduate) PLUS Loan ProcessingSession #30544March 20, 2012

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

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)

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

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.

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

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.

2007 2008 2009 2010 2011 2012 (in progress)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

PLUS Loans

PLUS Application & Credit Check• Borrowers are directed to Department of

Education’s page – StudentLoans.gov• Log in requires SSN, DOB, and FAFSA PIN

PLUS Application & Credit Check• Borrowers click “Request a Direct PLUS Loan” to

begin the process…

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

Parent application…

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

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!

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)

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)

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

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

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)

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

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

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)

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

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

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

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.

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.

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

The Final ProcessParent applies and completes a credit

check at StudentLoans.gov

Receive application file from COD and

load into PS

Run Query to view data from file

Create Parent Emplid with Bio/Demo Data

in Query and Relationships

Accept PLUS loan on the Student’s Award

Run Origination

Update Origination with Parent Emplid and Refund Option

from Query

Disburse PLUS Loan to Student Account

Refund goes to Parent’s Permanent Address if Refund

Option is “Borrower”

Questions?

Contact • Bridgette Betz

– Assistant Director

– Student Financial Assistance

– Missouri University of Science and Technology

– E-mail: berry@mst.edu

This presentation and all Alliance 2012 presentations are available for download from the Conference site at

www. heug.orgwww.psugonline.org

www.federalusersnetwork.comPresentations from previous meetings are also available