The Catholic University of America

 

Federal Direct Gradaute PLUS Loan

Federal Direct Graduate PLUS Loans are available to graduate students if they are credit-worthy applicants. A graduate student may borrow up to the total Estimated Cost of Attendance (COA) less financial aid resources received. The student can borrow to help pay for educational expenses at Catholic University, as long as they are enrolled at least half time in a degree program while meeting all basic eligibility requirements (including Satisfactory Academic Progress).

A student does not have to show financial need to borrow a Federal Graduate PLUS Loan. However the Federal PLUS Loan is a credit-based loan, so the U.S. Department of Education will perform a credit check on the applicant.

The Catholic University of America participates in the William D. Ford Federal Direct Graduate PLUS Loan Program (Direct PLUS). The Direct PLUS Loan program is a non-need based, low-interest loan made to graduate students. The student may borrow an amount up to the cost of attendance less any financial assistance. Please note that each new loan you receive requires a separate payment each month. The interest rate is fixed at 7.9%. Repayment begins 60 days after the full disbursement of the loan, and any changes to the loan must be executed by the University’s Office of Student Financial Assistance within 14 days of disbursement of the loan. Student must be U.S. citizens or permanent residents to apply for the loan.

 

Steps to Obtain a Federal Direct Graduate PLUS Loan at Catholic University

  1. Complete the Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.gov. The student and the co-signor (in applicble) must have a federal PIN, which can be obtained at http://www.pin.ed.gov.

  1. The student borrower must complete the DOE Direct PLUS Loan application (which initiates the credit check) at http://studentloans.gov.  To complete the application, click on “Request a PLUS Loan”. NOTE: If you apply for a subsequent PLUS Loan during the academic year or in a future year you will have to complete another DOE Direct PLUS Loan application. 

  1. The student borrower must complete the PLUS Loan Master Promissory Note (MPN) at http://studentloans.gov.  You will only be required to complete another promissory note for a subsequent application if you applied previously with a co-signer.

  1. The student borrower (if you are a first -time borrower of a Federal Direct Graduate PLUS Loan at Catholic University) must complete an entrance loan counseling session at http://studentloans.gov. You must complete an entrance loan counseling session so that you are aware of your rights and responsibilities as a borrower.  The on-line session will take you about twenty minutes to complete.

  1. Once a credit check is approved, the student borrower must complete the CUA Direct Graduate PLUS Loan application. It may be submitted via fax to 202-319-5573 or via mail to:  The Catholic University of America, Office of Student Financial Assistance, 6 McMahon Hall, 620 Michigan Avenue, NE, Washington DC 20064.

Please note: your Federal Direct Graduate PLUS Loan will not disburse to your student account unless you complete all of the steps.
 

Disbursement Procedure

After loan approval, the Direct PLUS funds will be available for disbursement, no earlier than 10 days before the start of the term. These funds are normally payable in two disbursements, one-half of the total loan amount for each semester. Funds will be applied toward the student’s university billing statement once the student has enrolled in sufficient credit hours. Interest on the loan begins to accrue at the time of disbursement.  A financial aid award notice will be available in Cardinal Station indicating the total loan amount of the Direct PLUS awarded. The actual amount disbursed will be the gross amount minus origination fees (2.5%).
 
Please note: If additional financial assistance or other educational resources are received by the student after the Direct PLUS application is certified, one or both of the loan disbursements may be reduced or cancelled to prevent over-awards. Similarly, if tuition charges are reduced because of a change in enrollment, one or both of the loan disbursements may be adjusted.
 

Timeline for Processing the Direct Graduate PLUS Loan

1. Once the university receives the FAFSA, we will determine if the student is eligible for federal, state and or institutional aid. The university may request additional documentation of the family’s financial situation. This will be communicated through the student’s To Do List in Cardinal Station.
 
2. Once the student has been awarded, which typically takes 2-4 weeks from the date we receive the last requested document, the student must accept or decline the offered aid in the Cardinal Station. Failure to do so will delay the processing of the Direct Graduate PLUS Loan.
 
3. Once the student has accepted or declined the offered aid in the Cardinal Station, Direct Graduate PLUS Loan eligibility is calculated, and the loan is processed. After loan approval, the Direct Graduate PLUS Loan funds will be available for disbursement.
 

Direct Graduate PLUS Loan Interest

The interest rate is a fixed 7.9 percent and is charged (accrued) on the loan from the time the loan funds are disbursed until it is paid in full.
 

Direct Graduate PLUS Loan Fee

In addition to interest, a Loan Origination Fee is charged as a percentage of the principal amount of each Federal Direct PLUS Loan. The U.S. Department of Education will deduct the fee before the loan disburses, so the loan amount disbursed will be less than the amount originally borrowed. The student is responsible for repayment of the entire amount, including the fee.
The Federal PLUS Loan has a 4.0 percent origination fee. However, Federal Direct Loan borrowers will receive an upfront rebate of 1.5 percent at the time of origination, based on paying your first 12 monthly payments on time. Therefore, the actual amount deducted from the gross amount of the loan borrowed is 2.5 percent. This fee reduces the amount that disburses to the student's account, so the student needs to take that into consideration when determining the amount to borrow. Please note: If the borrower fails to make 12 on-time monthly payments, the up-front rebate will be removed and the principle balance owed will be recalculated with the original 4.0 percent origination fee. For example, if $10,000 is borrowed under the Federal Direct PLUS Loan program, $250 (2.5 percent) will be deducted from the loan amount and paid directly to the U.S. Department of Education.
 

Direct Graduate PLUS Loan Limits

A student does not have to show need to borrow a Federal Direct Graduate PLUS loan. When indicating the amount of loan monies you are requesting, please consider what you will need for the entire academic year. Please note: Students planning to apply for a PLUS loan for the summer must complete an additional institutional application at the beginning of the summer term. A student may apply for a loan up to the estimated Cost of Attendance (COA), minus all other aid the student is receiving from all sources. The COA and the student’s total amount of financial aid can be found on the student’s award notice.
Currently there is no aggregate limit on the amount that a student may borrow from the Federal Direct PLUS Loan program.
 

Federal Loan FAFSA Processing Deadline

In order for the Office of Financial Aid to process you for your federal loan eligibility for the fall term, we must receive your completed, valid FAFSA results from the U.S. Department of Education by November 10 of that term. If you are applying for federal loans for the full academic year (fall and spring) or for the spring term only, we must receive your completed valid FAFSA results from the U.S. Department of Education by April 10 of the spring term.
 
SUMMER LOANS: In order for the Office of Financial Aid to process you for your federal loan eligibility for the summer term, we must receive your completed valid FAFSA results from the U.S. Department of Education and you must complete a institutional summer financial aid application three weeks before the end of the last summer session for which you are registered.
 

Requesting a Change to your Federal Direct Graduate PLUS Loan

To request a reduction or to cancel, please complete a Federal Direct Loan Reduction Request available on the Forms page.
 
To request an increase, please complete a Federal Direct Loan Graduate PLUS Application available on the Forms page.
 

Direct Graduate PLUS Loan Disbursement

If you apply for a Graduate PLUS Loan for the academic year, the loan will be disbursed to Catholic University in two equal installments - one each at the beginning of fall and spring semesters - and will be applied toward payment of tuition and fees, room and board, and other university charges on your student billing statement.
 

Direct Graduate PLUS Loan Refunds

The loan proceeds will be disbursed and applied to your student’s account at Catholic University. Any excess funds on the student's account will be refunded by paper check or direct deposit (if requested).  The University Refund Processing Schedule and individual contact information is available from the Office of Enrollment Services - Student Financial Services.

Direct Loan Exit Counseling

The federal government requires that students participate in Loan Exit Counseling prior to leaving or graduating from college so that you will know your rights and responsibilities. During Exit Counseling, you will also be given information about deferment and forbearance options and how to get the necessary forms. Even though you have a six-month grace period, the Exit Counseling process will help you set up a repayment plan, a direct withdrawal and a payment date. The Direct Loan Servicing Center, which handles all Federal Direct Loan repayments, hosts Direct Loan Exit Counseling at NSLDS Student Access. The online session should take about 20 minutes to complete.
 

Direct Graduate PLUS Loan Repayment

Repayment of the Federal Direct Loan begins six months after the student graduates or ceases to be enrolled at least half time. Generally, you'll have from 10 to 25 years to repay your loan, depending on which repayment plan (there are several) you choose. The Direct Loan Servicing Center will notify you when your first payment is due. If you do not choose a repayment plan, the U.S. Department of Education will place you on the Standard Repayment Plan, with fixed monthly payments for up to 10 years. Most Direct Loan borrowers choose to stay with the Standard Repayment Plan, but there are other options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period. For additional information about the repayment plans as well as a repayment plan calculator, visit StudentLoan.gov.
You can change repayment plans at any time by going to StudentLoans.gov and logging in to your account.
 

Direct Graduate PLUS Loan Deferment and Forbearance

A deferment is a postponement of payment on a loan. If you can't make your scheduled loan payments but don't qualify for a deferment, you may be able to receive a forbearance. A forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. For additional information, visit StudentLoan.gov.
 

Direct Graduate PLUS Loan Consolidation

There may be advantages to consolidating (combining) your federal loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time. Direct Loans provides an online consolidation calculator that you can use to find out how much you'll pay each month if you consolidate. Contact the Direct Loan Consolidation Center for more information at 1-800-557-7392. You can apply for a Federal Direct Consolidation Loan at the StudentLoans.gov.
 

Loan Forgiveness

The U.S. Department of Education (DOE) offers several loan forgiveness program for Teachers and Public Service.  For information go to StudentLoans.gov.

Additional Direct Graduate PLUS Loan Information

Contact the Federal Direct Loan Servicing Center at StudentLoan.gov or toll-free at (800) 848-0979.