Federal Direct Parent Loan for Undergraduate Students (PLUS)
This loan is a credit-based, unsubsidized loan for the parents of dependent undergraduate students. Although not a need-based loan, a Federal Direct PLUS Loan requires a student to complete the FAFSA. During the application process, the parent of the student must complete a credit check and a Master Promissory Note. The student must be enrolled at least half-time in a degree-seeking program. A parent can borrow up to the student’s remaining Cost of Attendance, less all other financial assistance received. Interest is charged during all periods, starting on the date which the loan is disbursed. Direct PLUS Loans do not have a grace period. The repayment begins as soon as the loan is fully disbursed, but a parent may defer repayment while the student is enrolled at least half time and for an additional six months after they drop below half time.
The amount listed in your financial aid award as [Allowance for PLUS Loan] represents the maximum amount that you COULD borrow through a credit-based Federal Direct PLUS Loan. this amount reflects thee estimated direct and indirect costs associated for the respective terms. As an undergraduate student, these additional loans can be either the Direct Federal PLUS Loans (borrowed by parents of dependent undergraduate students enrolled at least half-time) or Alternative Loans (borrowed by the student, usually with a credit-worthy co-signer).
If you decide to apply for a loan, you can begin the process below.
To Start the Loan Process:
- Visit StudentLoans.gov and sign in using the parent’s (parent of the student enrolled at Loyola University Chicago) information.
- Select the Request a PLUS option and select the Parent PLUS loan type.
- Follow the instructions to complete Steps 1 to 4, and a credit check will be conducted during Step 4.
- A result of your credit check will be presented to you on the screen as well as emailed to your email address on file with the U.S. Department of Education.
- If your credit check is approved, electronic confirmations of your credit decision and Direct PLUS Loan application will be sent to the Office of Student Financial Assistance.
- If your credit check is denied, an electronic confirmation of your denied credit decision will be sent to the Office of Student Financial Assistance. You will be prompted with additional options on StudentLoans.gov or click here to view these options below.
The parent of the student must complete a credit check and the Master Promissory Note before the funds from the Direct PLUS Loan can disburse to the student’s account.
A borrower with an adverse credit history may not be approved to receive a Direct PLUS Loan. If you are denied for a Direct PLUS Loan, you can choose to pursue the following options:
Appeal Credit Decision
A borrower has the option to appeal the credit decision on a PLUS Loan or Graduate PLUS Loan. To begin the appeal process, visit StudentLoans.gov and choose the ‘Appeal Credit Decision’ option under the PLUS Loan Process Menu on the left-side of your Home page. Contact the Direct Loan Servicing Center if you have additional questions about the appeal process.
Apply with an Endorser
An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser must be a credit worthy individual and may not be the student on whose behalf a parent obtains a Direct PLUS Loan. The endorser will be required to complete an Endorser Addendum with a loan reference number provided to the endorser from the borrower.
Request an Additional Unsubsidized Stafford Loan
If the parent is precluded from borrowing through the Federal Direct PLUS Loan program, the Dependent student can request an additional Unsubsidized Federal Stafford Loan. The student can be awarded up to the maximums provided for independent undergraduate students (up to $4,000 for freshman and sophomores per academic year; up to $5,000 for junior and senior students per academic year). This option is not available to graduate/professional students applying for the Direct Graduate PLUS Loan.