The Direct PLUS Loan Program allows parents of undergraduate students to borrow up to the full cost of attendance minus other financial aid. You must not have an adverse credit history. A credit check will be conducted. If you have an adverse credit history, you may still be able to receive a PLUS loan if you meet additional requirements.
For Direct PLUS Loans first disbursed on or after July 1, 2022, and before July 1, 2023, the interest rate is 7.54% percent. This is a fixed interest rate for the life of the loan. Direct PLUS Loans disbursed on or after October 1, 2020, carry a loan origination fee of 4.228%. The loan fee is a 95.772 percentage of the loan amount and is proportionately deducted from each loan disbursement.
Interest accrual begins on the date of the first disbursement and the first payment is due 60 days after the final disbursement. The parent has the option to defer the Direct PLUS loan if the student is enrolled at least half-time. For many parents, interest paid on PLUS Loans is tax deductible. For more information on education tax benefits, read the Internal Revenue Service's Publication 970, "Tax Benefits for Education" available online at https://studentaid.gov/resources/tax-benefits.
Maximum Loan Amount
Direct PLUS Loans may cover the full cost of attendance minus other financial aid. The cost of attendance is not the bill that you may get from your college; it is the total amount it will cost to go to college each year. The cost of attendance includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees, and, if applicable, dependent care. It can also include other expenses like an allowance for the rental or purchase of a personal computer, costs related to a disability, or costs for eligible study-abroad programs. To determine how much you wish to borrow for a full academic year use Loyola's gross-to-net loan proceeds calculator. 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 a current Free Application for Federal Student Aid (FAFSA) at https://studentaid.gov/h/apply-for-aid/fafsa. The Direct Plus Credit Application is available for parents of dependent undergraduate students beginning May 1st of each year.
To begin the process for the 22-23 academic year: (The process for 23-24 will be available beginning May 1, 2023).
- Go to https://studentaid.gov/
- Scroll down to Click on the Parent Tab
- Select the “ Apply for a Parent PLUS Loan” link
- Click on LOG IN TO START and log in using your FSA ID
- Select the 22-23 Award Year, then begin typing in your student’s information
- The loan period is August 2022 to May 2023 for the full year
- Please be sure to double check any pre-filled information to confirm it is correct! Be sure you are listed as the borrower and not the student
- Review terms and disclosures
- Submit application
- You will get the status of your plus loan at the end of the application
For an approved application:
- Complete the Master Promissory Note (MPN) - choose "PLUS MPN for Parents". This PLUS MPN is good for 10 years.
- Complete the Annual Student Loan Acknowledgement - must be completed annually
If not approved:
- Please follow the instructions provided on the federal site to proceed with adding an endorser, appealing the decision, or requesting the additional unsubsidized loan.
- If you have submitted an appeal, added an endorser, or are requesting the additional subsidized loan, please email Loyola's Financial Aid Loan Specialist, Renata Bass at firstname.lastname@example.org.
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 will 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, visit 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 repaying your loans and calculating estimated monthly payments can be found on the federal loan website.