The Catholic University of America

Federal Direct Parent PLUS Loan

The Catholic University of America participates in the William D. Ford Federal Direct Parent PLUS Loan Program (Direct PLUS).  The Direct PLUS Loan program is a non-need based, low-interest loan made to parents (including adoptive or stepparents) of dependent undergraduate students. Parents 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. Parents may also request a deferment of payment until six months after the student leaves school. For more information, please go to http://studentloans.gov.  Parents must be U.S. citizens or permanent residents to apply for the loan.

A parent does not have to show need to borrow a Federal Direct Parent PLUS loan. When indicating the amount of loan monies you are requesting, please consider what your student will need for the entire academic year. Please note: Parents planning to apply for a PLUS loan for the summer must complete an additional institutional application at the beginning of the summer term. A parent 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 and on the student financial aid service screens in Cardinal Station.There is currently no aggregate limit on the amount that a parent may borrower on behalf of a student(s) form the Federal Direct PLUS Loan program.

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

Application Process – Please note that this process requires the submission of a FAFSA, two applications and the signing of a Master Promissory Note by the parent. Please see timeline below for more details on what happens after you complete your application.

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

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

  1. The parent borrower must complete the DOE Direct PLUS Loan application (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 Parent PLUS Loan during the academic year or in a future year you will have to complete another DOE Direct PLUS Loan application.

  1. The parent borrower must complete the Parent 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. Once a credit check is approved, the parent borrower must complete the CUA Direct 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, McMahon Hall, Room 6, 620 Michigan Avenue, NE, Washington DC 20064.

If Your Direct PLUS is Denied by the Department of Education

Federal regulations require credit checks for the parent applicants. Parents with adverse credit history, those who have accounts more than ninety days delinquent, or have filed bankruptcy in the past may be denied the Direct PLUS. Parent borrowers will be notified if the application is denied, the reason for the denial, and the name of the credit bureau from which the denial was obtained.

Students of parents who are denied the Direct Parent PLUS Loan may be eligible for an additional Federal Direct Unsubsidized Loan. The additional Direct Unsubsidized Loan amount available each year is $4,000 for first and second year students and $5,000 for third and fourth year students. Parents must complete the CUA PLUS Loan Denial form and submit it to the Office of Student Financial Assistance for processing. This form is available at: http://financialaid.cua.edu/forms.

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. Please note that 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%).  By federal regulation, unless parents request otherwise, credit balances are refunded to the parent instead of the student. However, you may indicate on the application that you prefer that applicable refunds be sent to the student.

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 Parent 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 Parent PLUS Loan.

3. Once the student has accepted or declined the offered aid in the Cardinal Station, Parent PLUS Loan eligibility is calculated, and the loan is processed. After loan approval, the Direct Parent PLUS funds will be available for disbursement.

We encourage family’s considering the Direct Parent PLUS Loan to complete the entire application process well in advance of the start of the academic year. Late applications are unlikely to be completed before the fall 2011 term bill due date, and families who find themselves applying late should plan to use other means to cover the cost of attendance while their Direct Parent PLUS Loan application is pending.

Requesting a Change to your Direct Parent 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 the steps above.  PLUS Loans cannot be increased.  A second PLUS Loan must be initiated following the same steps as the first PLUS loan.

Direct Parent PLUS Loan Disbursement

If you apply for a Parent 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's billing statement.

Direct Parent 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.

Deferment & Forbearance

For PLUS loans disbursed after July 1, 2008, parents have the option of beginning repayment either 60 days after the loan is fully disbursed or deferring until six months after the dependent student, on whose behalf the parent borrowed, ceases to be enrolled at least half-time. Parents may request a deferment of each new Parent PLUS Loan by contacting the Direct Loan Servicing Center approximately 30 days after their Parent PLUS loan has been fully disbursed. By requesting a deferment, a parent will not go into repayment until after their student is no longer enrolled in at least a half-time status. Parents may need to provide a copy of their student’s academic verification to the Direct Loan Servicing Center. To apply for the in-school deferment, Direct Parent PLUS borrowers should call Borrower Services at 1-800-848-0979.

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 various repayment plans as well as a repayment plan calculator, visit StudentLoans.gov.

You can change repayment plans at any time by going to StudentLoans.gov and logging in to your account.

Direct Parent PLUS Loan Consolidation

 For information go to 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 programs for Teachers and Public Service.  For additional infromation go to StudentLoans.gov.

Additional Federal Direct Loan Information

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