Can anyone help me dissect this letter I got from the Department of Education?

Paying for College
1

<p>LETTER DOWN BELOW:</p>

<p>Dear choochoopain's family (Sorry, not going to put down my parent's name for security reasons), </p>

<p>You are approved to borrow a Direct PLUS Loan, pending the receipt of additional loan records from the school you or the student attends. This determination is based on the results of a credit check with:</p>

<p>(Sorry, not going to put the company due to security reasons.)</p>

<p>The pending loan records must be received within the next 90 days. If the loan records are received more than 90 days after the initial credit check, a new credit check will be conducted to determine your continued eligibility.
If you have questions regarding the next steps, the status of your loan, when the loan will be disbursed (paid out), or no longer wish to receive the loan, contact the school's financial aid office. After the first disbursement of your loan has been made, your loan will be assigned to a loan servicer and you will be provided with the servicer’s name, address and contact information. Your servicer will service, answer questions about, and process payments on your loan after you enter repayment.</p>

<p>Sincerely,</p>

<p>U.S. Department of Education
Federal Student Aid
William D. Ford Federal Direct Loan Program</p>

<hr>

<p>My parents and I are having a hard time trying to figure this out, especially because they don't know English that well. I understand the letter until this part: </p>

<p>"The pending loan records must be received within the next 90 days. If the loan records are received more than 90 days after the initial credit check, a new credit check will be conducted to determine your continued eligibility."</p>

<p>Does that mean we have to send our credit record to the school? Or do we have to send it somewhere else? I've already contacted my school's financial aid office, and the student accounts office; they barely helped. This is for a Direct PLUS loan by the way if you somehow missed it in the letter.</p>

2

<p>Basically, you have 90 days to get requested information (loan records) from your school and send them to Department of Education. If you take more than 90 days, additional credit check will be run to see if your parents are still credit worthy of the loan.</p>

3

<p>Okay, thanks! How do would you go about that? Also how long would it take for the school to actually give me the loan?</p>

4

<p>What the letter means is that your parents were approved for the Parent’s Plus Loan they applied for. They had two choices when filling out the application, they could have chosen a set amount or they can choose to get the highest amount of loan available, which means the loan amount will be set by the school. You do not have to do anything at this point. The college has 90 days from the date of approval to verify that you are enrolled in school and to verify how much the loan will be for. If you have additional questions regarding this process you can call your school’s financial aid office.</p>

5

<p>Call you school’s aid office. If your parents intend to borrow the PLUS loan, there may be additional steps required from the school’s point of view … for example, they (or you) may need to accept the loan online. Your parents will be required to sign a Master Promissory Note (the school can tell you where to go to sign … probably <a href=“http://www.studentloans.gov%5B/url%5D”>www.studentloans.gov</a>).</p>

6

<p>It is what kelsmom and missemily said…they are waiting for the school to do it’s part, that you are indeed attending, etc. The 90 limit is because some people apply really early and parent plus people don’t want an open ended loan.</p>

<p>They give the school 90 days, but the school will move much faster than that at this point.</p>

<p>The rest of the letter is in regards to whom eventually will be the administrator for collecting payments for the loan. For example, neltnet.</p>

<p>At this point you just want to be sure your school follows through, and they will, and that parents sign master promissory note through the link above.</p>

7

<p>Thanks everybody for your help! I was able to explain it well enough to my parents without fighting hahaha.</p>

8

<p>Very standard letter. You will need to do the promissory note, but other than that,it’s really just stuff the school has to attend to.</p>