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Office of Financial Aid

Federal Direct PLUS Loan

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, 2023, and before July 1, 2024, the interest rate is 8.05% percent. This is a fixed interest rate for the life of the loan. Direct PLUS Loans disbursed on or after October 1, 2021 and before October 1, 2024, 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."

Maximum Loan Amount

Direct PLUS Loans may cover the full cost of attendance minus other financial aid. The cost of attendance (COA), sometimes referred to as the student budget, is an estimate of what it will cost to attend Loyola for one year.  It's intended to help the applicant budget costs and is used by the financial aid office to determine eligibility for aid.  The COA includes tuition, living expenses (housing and food), books, course materials, supplies and equipment, transportation, personal expenses and average student loan fees.  The COA is not a bill and actual expenses will vary by student.  At Loyola, students will be billed for tuition, on-campus housing and food plans.  Learn more about the cost of attendance. 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.

Application Process

Prior to applying for a Federal Direct PLUS Loan, the student must have filed a current Free Application for Federal Student Aid (FAFSA).

To begin the process for the academic year 2024-25:

  1. Go to https://studentaid.gov/.
  2. Scroll down to click on the Parent tab.
  3. Select the “Apply for a Parent PLUS Loan” under Popular Topics.
  4. Kindly review all information on this page before proceeding to log in.
  5. Click on LOG IN TO START and log in using your parent FSA ID (not the student's FSA ID).
  6. Select the 24-25 Award Year, then begin typing in your student’s information.
  7. The loan period for the summer 2024 semester spans from May 2024 to August 2024. (For undergraduate students, summer sessions are billed separately, thus requiring a separate loan application solely for the summer session).
  8. The loan period for the fall 2024/spring 2025 semester extends from September 2024 to May 2025.
  9. Please be sure to double check any pre-filled information to confirm it is correct! Be sure the parent is listed as the borrower and not the student.
  10. Review terms and disclosures.
  11. Submit application.
  12. You will get the status of your plus loan at the end of the application.

For an approved application:

  1. Complete the MPN (Master Promissory Note). Choose the option "PLUS MPN for Parents." This PLUS MPN is good for 10 years.

If not approved:

  1. Please follow the instructions provided on the federal site to proceed with adding an endorser, appealing the decision, or requesting the additional unsubsidized loan.
  2. Send an email to rbass@loyola.edu if you submit an appeal, add an endorser, or are requesting the additional unsubsidized loan. Please include the student's name and ID number.

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.