The Federal Direct PLUS Loan Program allows parents of undergraduate students to borrow up to the full cost of attendance minus other financial aid. Eligibility is based on a satisfactory credit check. The interest rate is 7.21 percent for loans disbursed between July 1, 2014 and July 1, 2015. Interest rates will be established each year for PLUS Loans. The interest rate established for each loan is fixed and will apply for the life of the loan. Direct PLUS Loans, where the disbursement is made on or after December 1, 2013, carry a loan origination fee of 4.288 percent which is deducted from each disbursement. The net disbursement amount equals 95.712 percent of each disbursement of the loan. Interest accrual begins on the date of the first disbursement. The first payment is due 60 days after the final loan disbursement or payment can be deferred as long as the student is enrolled as at least half-time . For many parents, interest paid on PLUS Loans is tax deductible. For more information on education tax benefits, see the Internal Revenue Service's Publication 970, "Tax Benefits for Education,"available online at http://www.irs.gov/formspubs/index.html.
Maximum Loan Amount
PLUS Loans may cover the full cost of attendance minus other financial aid. The cost of attendance includes actual tuition, fees and room, as well as standard allowances for meal services, books and supplies, transportation and personal expenses. If your son or daughter is the recipient of financial aid, the maximum amount you can borrow through the PLUS Loan program is listed in the “Other Resources” section of the student’s Financial Aid Award Notification or can be found under "Financial Aid Status by Year" section on WebAdvisor. Determine how much you wish to borrow for a full academic year. The total loan amount will be split evenly for the fall and spring semesters.
Prior to applying for a Federal Direct PLUS Loan, the student must have filed the 2014-15 Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.
The PLUS application process involves two steps: A completing the Federal Direct PLUS Loan Request for Supplemental Information, and B completing the Federal Direct PLUS Loan Master Promissory Note (MPN). The PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college provided you do not require an endorser.
To begin the process, "Sign In" to the federal loan web site at StudentLoans.gov. You must have a Department of Education issued Personal Identification Number (PIN) before completing the request and promissory note. If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN Web site, www.pin.ed.gov.
A. Complete the 4 Step PLUS Loan Request Process
Step 1 Personal Information
Step 2 Student and Loan Information
Step 3 Review the Application
Step 4 Credit Check and Submit
B. Complete the 4 Step Master Promissory Note (MPN) Process
Step 1 Personal Information
Step 2 Personal References
Step 3 Terms and Conditions
Step 4 Review and Sign
Using the information provided on the application form, the office of financial aid will originate and disburse the loan.
If your loan is not credit-approved, you will be offered the opportunity to appeal the decision online by submitting additional information or you can add a credit-worthy endorser to the loan.
If you do not wish to pursue either of these options, your son or daughter may apply for an additional unsubsidized Federal Direct Stafford Loan by contacting Loyola's office of financial aid at 410-617-2576, 800-221-9107, fax 410-617-5149, or e-mail firstname.lastname@example.org. Additional Unsubsidized Loan amounts: First year $4,000; Sophomore $4,000;
Junior $5,000; Senior $5,000,
If you have questions about the online process or your credit decision, contact Federal Applicant Services at 800-557-7394.
Flexible Repayment Options
- Standard Repayment Plan: Fixed monthly payments for up to 10 years.
- Extended Repayment Plan: Fixed monthly payments for 12 to 30 years, depending on the total amount of your Direct Loans.
- Graduated Repayment Plan: Payments that start off lower, and then gradually increase, usually every two years. You'll repay your loan in full within 12 to 30 years, depending on the total amount of your Direct Loans.
- Deferment: Temporary suspension of a borrower's monthly payment. Student must be enrolled half-time. Interest accrues during the deferment period.
- Consolidation: Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages. For more information on loan consolidation, go to www.loanconsolidation.ed.gov.
Additionally the Federal Direct Loan Program offers a quarter point (0.25) interest rate reduction for borrowers using the Electronic Debit Account (EDA) repayment method.
More information on calculating estimated monthly payments is available at www.studentaid.ed.gov, under the "Repaying Your Loans" section.
Printable Federal Direct PLUS Overview (pdf)