Financial Aid

Federal Direct Parent PLUS Loan

Federal Direct Parent PLUS Loans are available to a parent of a dependent undergraduate student, if they are a credit-worthy applicant. A parent may borrow up to the total Estimated Cost of Attendance (COA) less all other aid the student is receiving from all other sources. The parent can borrow to help pay for educational expenses at Catholic University as long as their student is enrolled at least half-time in a degree program while meeting all basic eligibility requirements (including Satisfactory Academic Progress).

Because funding for Federal Direct PLUS loans comes from the U.S. Department of Education, parents do not have to find a lender to borrow through this program. Please disregard any offers you may receive about the Federal PLUS Loan programs offered through private lenders. Catholic University participates in the Direct Lending Program, in which parents borrow their federal loan funds directly from the United States Department of Education rather than private lenders. Since Catholic University is a Federal Direct Lending institution, you may not use a private lender to apply for a Federal PLUS Loan.

A parent does not have to show financial need to borrow from the Federal Parent PLUS Loan program. 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.

Direct Parent 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 Parent 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 parent 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 the assumption that the first 12 monthly payments will be paid 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 parent 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 upfront 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 Parent PLUS Loan Limits

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 planing 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.

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

Step 1: Complete a Free Application for Federal Student Aid (FAFSA). (NOTE: The parent borrower must document their eligible citizenship status. In most cases an eligible citizenship status can be documented by completion of the FAFSA, as long as the parent borrower's name, date-of-birth and social security number are included. The Office of Financial Aid will contact the student and/or parent if additional citizenship information is required.)

Step 2: Complete a Parent Federal Direct PLUS Loan Application, available on the Office of Financial Aid's Forms page.

Step 3 (First-time Federal DIRECT Parent PLUS Loan borrowers at Catholic University only): Complete a Federal Direct Parent PLUS Loan Master Promissory Note (MPN) on the U.S. Department of Education's Direct Loan Master Promissory Note Web site. Once on the site, you should select the Complete New MPN for Parent PLUS Loans option and follow the steps to complete the note. If you are experiencing technical difficulty signing the Master Promissory Note online, please contact the Department of Education's customer service center for borrowers toll free at 800-557-7394.

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

Direct Parent PLUS Loan Approval

After you complete the Federal Direct Parent PLUS Loan Master Promissory Note and submit a Catholic University's Parent Federal Direct PLUS Loan Application indicating the amount for which you wish to be approved, the Office of Financial Aid will request approval from U.S. Department of Education. The U.S. Department of Education will then initiate a credit check to determine the parent borrower's credit worthiness. The U.S. Department of Education will mail you the results of your credit check and transmit this information electronically to Catholic University.

If you are denied credit, you will receive an endorser form (you might still be able to receive a loan if someone, such as a relative or friend, who is able to pass the credit check agrees to endorse your loan). For further information regarding the Direct Parent PLUS credit decision, parents can call the Direct Loan Customer Service Center toll-free at 800-557-7394.

Should you be denied for the Parent PLUS Loan, the student may request to be considered for an additional Unsubsidized Stafford Loan. The student can make this request by completing the “Request to Increase Federal Unsubsidized Loan Due to Parent PLUS Loan Denial” section of the Federal Direct Student Loan Adjustment Request form, available on the Office of Financial Aid's Forms page. Freshman and sophomores may be eligible for a maximum of $4,000 in additional funds. Junior and seniors may be eligible for a maximum of $5,000 in additional funds. Please note: if at a later time during the academic year a parent becomes eligible or is approved with a co-signor for a Parent PLUS loan, the additional Unsubsidized Stafford Loan will be cancelled.

Requesting a Change to your Direct Parent PLUS Loan

To request an 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 Parent PLUS Application available on the Forms page.

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 money 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). You may contact the Office of Student Accounts with billing or refund inquiries at 202-319-5036 or by email at cua-accounts@cua.edu.

Direct Parent PLUS Loan Repayment, 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, Direct Loan Repayment Plan webpage.

You can change repayment plans at any time by going to the Direct Loan Servicing Center's Web site and logging in to your account.

Direct Parent 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 Federal Direct Consolidation Loan Information Center.

Direct Parent PLUS Loan Cancellation

For information, visit the Direct Loan Cancellation Web site.

Additional Federal Direct Loan Information

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