You will be told what you are undertaking as a borrower. You have certain rights and responsibilities concerning your loan and indebtedness, and you will need to know what they are. You will sign a statement that you understand your obligations. Money owed on your bill will, at that point, be paid by the loan. If no money is owed, the entire amount of the loan payment can be given to you.
Federal law requires loans to be prorated under certain circumstances.
This means that you will only be able to receive a portion of the maximum loan limit allowed for your class level based on the number of hours enrolled or the remaining length of your academic program. For example, suppose a senior enrolls for the Fall semester and will graduate at the end of that semester. This remaining period of enrollment is less than an academic year or one-half of an academic year. The Federal PLUS Loan is for parents of dependent undergraduate students . To apply for a Federal PLUS Loan, the parent and student complete the PLUS section of the ODC application.