 Hello, my name is Teri Crowley and I wish to share this video with you about the Direct Plus Loan for Parents of Undergraduate Students as a payment option. This is an online application at the federal website, studentaid.gov. There is a parent tab and there's two parts to the application. First, a credit review to apply for a Parent Plus Loan, and secondly, to complete a master promissory note, a legal document to repay this loan. The loan is in the parent's name. It has a fixed interest rate of 7.54%. There is an origination fee of 4.228% that is deducted from the loan payments that are sent to the student's UVM account. To determine the amount to borrow, you can use our billing estimator at go.uvm.edu forward slash estimate my bill. Before you apply for a Parent Plus Loan, if you have a security freeze on your credit file that does need to be removed, the parent would login with their FSA ID number, complete the loan information indicating the academic year of 2022 to 2023, and completing their student information. There's two to three questions about whether you wish to repay the loan now or to defer payment while the student is in school, keeping in mind that the interest will be accruing while the student is in school. The loan amount requested here is the gouvm.edu estimate your bill site. You can borrow a maximum plus loan amount. You have a couple of options that's determined by the cost of attendance, less any other financial aid, or you can choose a specific loan amount. In this example, I'm borrowing $20,883 for the year. I would like to pay $10,000 to the fall semester and $10,000 to the spring semester. I'm allowing $883 for that origination fee. I would then submit a credit check and I would get an immediate response on the credit decision and the next step would be to complete the master promissory note. Again at that federal website, signing in with my parent FSA ID number and completing the information on the promissory note, reading, signing, and submitting electronically. Now there is a plus loan option. If the parent is not initially approved for that loan, they may invite and endorse or a credit worthy co-signer to sign their loan to become approved for it. The parent would sign the promissory note, the endorser would sign an addendum. The other option is if the parent cannot resolve the credit issue. The student may be awarded an additional direct unsubsidized loan. It is limited to $4,000 for a first or second year student, $5,000 for a junior or senior student. If this is the choice, the student would send an email request to our office to request that loan in lieu of the parent plus loan. Now if the parent plus loan is approved, it is listed on the student's financial aid offer and also is listed as a pending credit on the billing statement to resolve that amount of the bill. If you're borrowing for the full year, half would be applied to the fall, the other half to the spring, and the loan can be paid up to 10 days before the start of the semester. If the loan overpays the account, a credit will be issued and a refund may be directly deposited to the account on file. I hope this information was helpful to you tonight and we have other videos located on our orientation page. If you have any questions, feel free to contact our office. Thanks so much.