Student and parents make financial decisions on how to pay for college. Student and parents select the school to attend. Loan Application Phase Borrower requests loan via submission of a loan application and promissory note to lender. School certifies the student's eligibility, which includes enrollment on at least a half-time basis. Lender approves the borrower's loan request and obtains a loan guarantee.
Guarantor provides guarantee.
Disbursement Phase Lender sends the loan proceeds to the school via a check or electronic funds transfer. School may contact borrower for endorsement of check. School applies the loan proceeds to student's outstanding bill and provides remaining funds to borrower. Lender sends parent borrower a repayment disclosure statement for Federal PLUS loan. Parent borrower with Federal PLUS loans begin repayment after full disbursement and the first payment is due no later than 60 days later.