Tulane Student Direct Loan Process
- Complete a Free Application for Federal Student Aid (FAFSA)
- Complete Entrance Counseling
- Complete Master Promissory Notes (MPN)
- Complete the Parent PLUS or Graduate PLUS Request Process
- Monitor Your Status through Tulane Gibson Online
- Complete Expected Enrollment and Make Satisfactory Academic Progress
- Complete Exit Counseling
- Consider Repayment Options
1. Every year, complete a Free Application for Federal Student Aid (FAFSA)
2. Once for each type of Direct Loan, complete required (if any) Entrance Counseling
- The preferred FAFSA completion deadline for Tulane University Financial Aid is six months before the student's semester or academic year enrollment begins.
- The Tulane University Financial Aid FAFSA completion deadline for loan processing is one month before the student's semester enrollment ends.
- Each FAFSA has a designated "from" year and "to" year (for example, 2010-2011), and may be completed as early as January 1st of the "from" year and as late as June 30th of the "to" year.
- Designate Tulane University as a recipient of your FAFSA information.
- You may complete the FAFSA on www.fafsa.gov, which is linked to www.studentloans.gov.
3. Complete a Master Promissory Note (MPN) for each Direct Loan
- Entrance counseling is not required every year.
- Entrance counseling is not required for Parent PLUS Loans.
- You may complete Direct Stafford and Graduate PLUS counseling simultaneously.
- You may complete and check your completed entrance counseling sessions on www.studentloans.gov.
4. Complete the PLUS Request Process for each PLUS Loan
- The MPN completion process requires reference information, completion in one sitting, and takes about 30-40 minutes.
- Complete MPN's on www.studentloans.gov.
- MPN completion is not required every year, but is generally required only once for each type of loan.
- • Exception: endorsed PLUS or Grad PLUS requires a new MPN for each endorsed loan
- • Exception: an MPN expires in one year if a disbursement is not made on the MPN
- • Exception: an MPN expires after ten years.
- If you are borrowing or expecting to borrow a Parent PLUS or Graduate PLUS Loan, you must complete a request process for every period of enrollment.
- The request process takes about 5 minutes if a PLUS MPN has already been completed.
- An amount to be borrowed (either a specific dollar amount or "maximum") will be requested.
- Complete the PLUS request process on www.studentloans.gov.
- A credit report will be reviewed for the borrower to determine absence of negative credit.
- Federal Direct PLUS loan approval is based on absence of adverse notations on the borrower's credit report as reviewed by the lender (the U.S. Department of Education). A borrower is not eligible to receive a Direct PLUS loan if the borrower has an adverse credit history as determined in accordance with the Department's regulations. A credit check is conducted on each Direct PLUS Loan applicant to determine if the applicant meets this eligibility requirement. A Direct PLUS Loan applicant is considered to have an adverse credit history if he or she meets one or more conditions for a denied credit check:
- Bankruptcy (Chapters 7,11, or 12 within the past 5 years)
Note: Department Policy does not consider Chapter 13 bankruptcy as adverse credit.
- Voluntary surrender within the last 5 years
- Repossession within the last 5 years
- Foreclosure proceedings started
- Foreclosure within the last 5 years
- Deed in lieu of foreclosure
- Accounts currently 90 days or more delinquent
Note: Unpaid collection accounts and charge offs are considered adverse credit.
- Wage garnishment within the last 5 years
- Defaulted loan that has been claim paid
- Lease or contract terminated by default
- County/State/Federal tax lien, within the past 5 years
- Direct Loan regulations provide that an applicant who is determined to have an adverse credit history may receive a Direct PLUS Loan if the applicant obtains an endorser who does not have an adverse credit history, or documents to the satisfaction of the Secretary the existence of extenuating circumstances related to the adverse credit history. If a borrower is denied a PLUS loan, only the lender can discuss the reasons for a denial. On occasion, a denial due to discrepancies on a credit report can be resolved. A denied borrower has the option to re-apply with a creditworthy endorser (cosigner).
- If a Parent PLUS is denied, the parent may obtain an endorser/co-signer for the loan.
- If a Graduate PLUS is denied, the student may obtain an endorser for the loan.
- If a Parent PLUS is denied and the parent obtains no endorser, the student may be eligible for a limited amount of additional Direct Unsubsidized Stafford Loan.
5. Monitor Financial Aid Application and Loan Disbursement Progress through the Tulane Gibson Online System
6. Note That Disbursed Loans May Be Revised: When Borrower is Overawarded; When Borrower Does not Complete Expected Enrollment and Earn At Least One Passing Grade; Maintain Satisfactory Academic Progress for Continued Eligibility
- Tulane University maintains an online system called Gibson Online.
- Through Gibson Online, a student may track his or her financial aid application file completion status (including any documentation requirements that need to be completed), accept or decline packaged loan eligibility (and other financial aid), and track the progress of loan disbursement. A student may also view his or herTulane Accounts Receivable (billing) credits (including loan disbursements) and charges.
7. Exit Counseling
- Disbursed loans may be partially or completely taken back (returned) if the student is overawarded with financial aid (it is found that the student's total financial aid exceeds their Cost of Attendance for the same period) or if the student does not complete expected enrollment and earn at least one passing grade for the loans' attributable semester.
- Eligibility to borrow educational loans may be taken away if a student does not maintain Satisfactory Academic Progress.
8. Repayment, Forgiveness and Consolidation Options
- When a student Direct Loan borrower graduates or otherwise ceases enrollment, Direct Loan exit counseling is required.
- Exit counseling may be completed by clicking here, or navigating to www.studentloans.gov, clicking "Exit Counseling" under "Tools and Resources," then clicking "Exit Counseling" once again.
- A Direct Loan borrower may consolidate (combine) federal loans into a Federal Direct Consolidation Loan.
- A student Direct Loan borrower may repay Direct loans based on income (Income-Based Repayment Plan, or IBR) or through a variety of other repayment plans.
- In some circumstances, forgiveness of Direct loan may take place for certain student borrowers repaying through an income-related repayment plan (Income-Based Repayment, or IBR).
- You may explore repayment, forgiveness and consolidation options on www.studentloans.gov.
Page last modified on April 13, 2012.
Please email webmaster with any questions or concerns.
Site address: http://www.finaid.tulane.edu