Pennsylvania Code › Title 22 - EDUCATION › Part VIII - Higher Education Assistance Agency › Chapter 121 - STUDENT FINANCIAL AID › Subchapter H - FEDERAL PLUS PROGRAM › Section 121.131 - Submission and processing of applications

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Applicant.
A parent of a
				  dependent student desiring to secure a guaranty of a Federal PLUS Loan shall
				  obtain from a participating lender, a participating school or Agency a loan
				  application packet containing the application/promissory note form for the
				  Federal PLUS Loan. The information provided on the form will be used to
				  determine the eligibility of the applicant to receive a PHEAA Federal PLUS
				  Loan. The student for whom the loan funds shall be used to meet educational
				  expenses shall complete the information requested on the student's portion of
				  the Federal PLUS Loan application, including the affidavit in which the student
				  authorizes the school and the lender named on the Federal PLUS Loan application
				  form to release information contained in the student's file that is relevant to
				  the eligibility of the student for the Federal PLUS Loan Program. The applicant
				  shall complete the appropriate section of the application, including the
				  affidavit in which the applicant agrees to use the loan proceeds solely for the
				  educational expenses of the student named in the application. The applicant
				  shall also read, sign and date the promissory note included on the loan
				  application form. After completing the appropriate section of the Federal PLUS
				  Loan application form, the applicant shall retain one copy of the form and
				  forward the remaining copies of the application/promissory note form as
				  referenced on the form.
(b)
Educational institution.
The institution shall certify the
				  Federal PLUS Loan application according to the instructions provided by the
				  Agency.
(c)
Processing by
				  the Agency.
The Agency will check the application/promissory note form
				  for completeness. If not complete, the Agency will obtain from the applicant
				  the missing data items.
(d)
Completion of processing.
Upon receipt of missing information,
				  the Agency will complete the processing of the loan application and determine
				  the amount of loan assistance the borrower is entitled to obtain. The Agency
				  will inform the lender of the amount of the guaranty by sending the lender the
				  appropriate Loan Guaranty Notice and Disclosure Statement.
(e)
Action by lender.
The
				  lender shall provide the applicant with a copy of the Loan Guaranty Notice and
				  Disclosure Statement and disburse the funds by means of a check or electronic
				  funds transfer. If the lender does not wish to make the loan, the lender shall
				  mark "Denied" on the Loan Guaranty Notice and Disclosure Statement or report
				  the denial of the loan by the computer terminal. An adverse action notice shall
				  be provided to the borrower by the lender if loan assistance is
				  denied.
The provisions of this §
												121.131 amended under section 4 of
						the act of August 7, 1963 (P. L. 549, No. 290) (24 P. S. §
													5104); section 1 of the act of January 25,
						1966 (P. L. 1546, No. 541) (24 P. S. §
													5151); the act of July 18, 1974 (P. L. 483,
						No. 174) (24 P. S. §§
													5181-5189); the
						act of July 1, 1988 (P. L. 1259, No. 155) (24 P. S. §§
													5191-5197); and the act of June 26, 1992 (P.
						L. 322, No. 64) (24 P. S. §§
													5198.1-5198.7).