PARENT PLUS LOANS – EXISTING BORROWERS * I nformation about Credit Freezes
❑ The student will accept the desired loan(s) on NYU Albert (Accept/Decline Financial Aid link) and assign each
loan to a parent borrower by selecting the existing borrower from the drop down box .
❑ Note that a PLUS Loan Request is then automatically generated and FSA will check your credit history in order to
obtain a credit decision. Credit decisions are valid for 180 days from the date FSA completes each credit check.
❑ If credit is approved, within approximately two business days of the student accepting the loan(s), a PLUS
Confirmation email (subject line “NYU PLUS Loan Confirmation Instructions”) will be sent to the designated
parent. Complete the PLUS Confirmation email from NYU by clicking the link in the email and following the
instructions.
❑ If credit is denied, please see the information below for your options.
GRADUATE OR PARENT PLUS LOAN CREDIT DENIALS
The NYU Office of Financial Aid is not provided with the specific reason for the denial. If your PLUS Loan is credit
denied there are three options:
1. Appeal the credit decision with the lender, Direct Loans, by documenting extenuating circumstances at
studentaid.gov .
2. Have a qualified cosigner complete an Endorser Addendum at studentaid.gov .
3. For parents who have been denied, the student may request additional Unsubsidized Loan in the student’s
name from the NYU Office of Financial Aid. The additional loan will be up to $4,000-$5,000 depending on the
student’s grade level. If at a later time during the academic year a parent becomes eligible or is approved with
an endorser for a Parent PLUS loan, the additional Unsubsidized Stafford Loan will be cancelled .
4. Pursue a private educational loan in the student’s name.
Graduate Students or Parents who are originally credit denied for a PLUS Loan, but have obtained approval by
appeal or endorser are required to:
❑ Complete an online PLUS Loan Counseling session. The federal Department of Education will contact the
borrower in these cases and direct them to studentaid.gov to complete PLUS Loan Counseling. Your PLUS
Loan cannot disburse to your Bursar bill until you have completed the PLUS Loan Counseling.
❑ Complete a new PLUS Loan Master Promissory Note. Any PLUS Loan that has been approved with an
endorser must have its own PLUS Loan Master Promissory Note. Direct Loans will not disburse your loan funds
without this.
TIMEFRAME FOR ACCEPTING AND DISBURSING FEDERAL LOANS
❑ The ability for students to accept or decline their federal loans typically begins in May or June, prior to the start
of the new academic year. If loans are offered after that timeframe, students can accept or decline their loans
immediately thereafter.
❑ All federal loans must be accepted prior to the last week of each semester. Once a semester has ended, all
loans that haven’t been accepted will be canceled.
❑ Note that PLUS Loan credit decisions are valid for 180 days. Credit denied graduate and parent borrowers who
decide to pursue an appeal or endorser must do so before the credit decision expires. PLUS Loan Credit
Counseling must be completed within that 180 day period as well.
❑ Federal financial aid regulations prohibit schools from disbursing loan funds more than 180 days after each loan
period (semester) ends. So, it is important to complete all required documents, as previously described, as soon
as possible. Once the 180 day-mark after the end of each loan period is reached, loans that have not disbursed
will be canceled.
*If you have placed a security freeze on your credit file with Equifax and/or TransUnion, you must lift or remove
the freeze at each credit bureau before FSA can determine your credit status. Your Graduate or Parent PLUS Loan will
not be processed if you have a security freeze on your credit files.