Must a school determine a students eligibility for a subsidized Federal Stafford Loan before determining a parent borrowers eligibility for a Federal PLUS Loan?
A. No. A school may certify and disburse Federal PLUS Loan funds without first determining the student’s eligibility for either a Federal Pell Grant or Stafford Loan. Source: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-13. Q. The Federal PLUS Loan Application and Master Promissory Note does not include a place for the student to attest to his or her citizenship or default/overpayment status, and no longer requires the student’s signature. But the school must still certify on the separate Federal PLUS Loan Information and School Certification form that the student is, (1) a U.S. citizen, permanent resident, or other eligible non-citizen and (2) based on records available and appropriate inquiry, the student has met the requirements of the Selective Service Act, is not incarcerated, and that neither the parent borrower nor the student is liable for an overpayment of any federal grant or loan made under the Act, is not in default, or if so, has made satisfac
