Federal Direct Parents Loan to Undergraduate Students (PLUS)
Parents may borrow up to the cost of attendance minus any other financial aid per academic year on behalf of eligible dependent students. Applicants do not have to demonstrate financial need. Application is made by completing the FAFSA and Direct Parent Loan Application.
Federal Direct Loans
Students may qualify for a “subsidized” Federal Direct Loan which is based on financial need. The federal government will pay the interest on the subsidized loan while students are in college. Any first-time borrower or borrowers who have paid off their loan prior to July 1, 2013 and are borrowing again can receive Subsidized loans only within 150% of the length of their program of study. Students may qualify for an “unsubsidized” Federal Direct Loan, regardless of need. Interest will accrue on unsubsidized loans during the in-school and repayment periods. Dependent undergraduate students can borrow up to $5,500 as a freshman; up to $6,500 as a sophomore; and $7500 as a junior or senior in a bachelor’s degree program. Independent undergraduate students and students whose parents are unable to obtain the PLUS Loan can borrow up to $9,500 as a freshman (at least $6,000 of this amount must be unsubsidized); up to $10,500 as a sophomore (at least $6,000 of this amount must be unsubsidized); and up to $12,500 as a junior or senior in a bachelor’s degree program (at least $7,000 of this amount must be unsubsidized). Applicants will complete the FAFSA to determine eligibility. Direct Loans for first-time borrowers carry a variable interest rate, capped at 8.25%. An origination fee of varying amounts may be deducted from the students’ loan proceeds. Repayment is not required as long as students are enrolled, at least, half-time. Students will have a six-month grace period after they cease to be enrolled before repayment must begin. The total outstanding loans that dependent undergraduate students may have cannot exceed $31,000. Independent undergraduate students may borrow up to a total of $57,500.
These annual loan limit amounts are the maximum yearly amounts students can borrow in both subsidized and unsubsidized loans. Students can have one type of loan or a combination of both. Students cannot borrow more than their cost of attendance minus any other financial aid received. Also, students must be enrolled at least half-time in a qualifying program of study and must complete online Entrance Counseling and a Master Promissory Note.tent