Stafford/PLUS Fee Reimbursement

Stafford/PLUS Loan Origination Fee Reimbursement

General Information

The CGMA Stafford/PLUS Loan Origination Reimbursement Program offers help to clients and their families who finance post-secondary education through the Federal Stafford Loan or Federal Parent Loan for Undergraduate Students (PLUS), by refunding the mandatory 3% loan origination fee that is charged each borrower. The lender ordinarily deducts this fee from the loan disbursement check. After confirming use of the loan, CGMA will reimburse the dollar amount of the loan origination fee to the client.

Eligibility Requirements

Federal Stafford Loan: All CGMA clients, on behalf of themselves or their eligible family members. The student must be enrolled at least half time in a participating post secondary education institution.

Federal PLUS Loan: All CGMA clients who have dependent children enrolled at least halftime in a participating post secondary educational institution.

Eligibility does not extend to CGMA clients who are currently delinquent in repaying any CGMA loan or who appear on the CGMA Restricted List.

Notes

STAFFORD and PLUS loans are made through one of two programs:

   The Federal Family Education Loan (FFEL) Program

   The Federal Direct Student Loan (Direct Loan) Program
      (sometimes referred to as the William D. Ford Direct Loan Program)

The major difference between the two programs is in the source of funding. Under the FFEL Program the money is borrowed from a private lender. Under the Direct Loan Program, money is borrowed directly from the federal government.

The school determines which program to use. Some schools participate in the FFEL Program while others participate only in the Direct Loan Program.

   Eligibility is based on the client's and the student's status as of the first day of the course for which assistance is requested.

   Participating educational institutions include most two-year and four-year colleges and universities, graduate and profession institutions, and many vocation/technical schools.

You may apply for a refund of the loan origination fee at the end of each academic term for which a Stafford or PLUS loan was disbursed to the student's account. Refund applications must be submitted within 12 months after the date the loan funds are disbursed.

   Individuals receiving assistance under this program may also be eligible for assistance under other CGMA Education Programs.

Application Procedures

step 1 When a Stafford or PLUS loan is approved and funds are transferred to the school, the lender will send a Notice of Loan Guarantee and Disclosure Statement (FFEL Program) or a Notice of Disbursement Made (Direct Loan Program), showing, among other things, the principal amount of the loan and the origination fee. Retain this notice. You will need it for step 4.

step 2 At the end of the school term, obtain an account statement from the school showing deposits to the student's school account for that term.

step 3
Complete all sections of the Application for Stafford/PLUS Loan Origination Fee Refund (CGMA Form 8)*

* Contribution Forms are available in Adobe Acrobat (PDF) format. If you do not have Adobe Acrobat Reader on your computer, you may download it free by clicking here Get Adobe Acrobat Reader.

This form is also available from your nearest CGMA Representative or CGMA-HQ (800) 881-2462 or (202) 493-6621.

step 4
Attach the following documents:

A copy of the Notice of Loan Guarantee and Disclosure Statement (FFEL Program) or the Notice of Loan Disbursement (Direct Loan Program) from your lending institution, retained in step 1

The student's school account statement from step 2

A clear copy of the front and back of the client’s valid Coast Guard ID card (both sides, clearly visible).

step 5
Make a photocopy for your records and Mail or fax the entire package to:

COAST GUARD MUTUAL ASSISTANCE
4200 Wilson Blvd, Suite 610
Arlington, VA 22203-1804

OR

Fax: (202) 493-6686

After ensuring the application and attachments are complete, CGMA-HQ will process the request and issue a check to the client for the proper amount.

Need More Information?

For more information on Federal Student Loans, including how to apply, current interest rates and the maximum amounts for the Stafford loan, contact your school's Financial Aid Office, call the U.S. Department of Education Federal Student Aid Center at 1-800-433-3243 (TTY users dial 1-800-730-8913), visit their Website: http://studentaid.ed.gov or by writing to the following address:

Federal Student Aid Information Center
P.O. Box 84
Washington, DC 20044-0084

For additional assistance or information on obtaining a Stafford/PLUS Loan Origination Fee Refund, please:

See Section 3-C-7-d of the CGMA Manual.

Contact your nearest CGMA Representative

Call CGMA-HQ at (800) 881-2462 or (202) 493-6624

Send us e-mail

Helping Coast Guard Families
Meet Their Academic Goals