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.
In addition to interest, a Loan Origination Fee is charged with the principal amount of each subsidized and unsubsidized Federal Direct Student Loan received. The U.S. Department of Education will deduct the fee before the loan is disbursed, so the loan amount disbursed will be less than the amount originally borrowed. Parents are responsible for repaying the entire amount, including the fee.
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 studentaid.gov. Parents must be U.S. citizens or permanent residents to apply for the loan.
Federal regulations require a credit check for the parent applicant. 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 Parent PLUS loan. Parent borrowers will be notified (by Direct Loans) if the application is denied, the reason for the denial, and the name of the credit bureau from which the denial was obtained.
Important Notes:
Important: We encourage families considering the Direct Parent PLUS Loan to complete the entire application process well before the start of the academic year. Late applications are unlikely to be completed before the fall term due date. 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.
To request a reduction or to cancel, please complete a Federal Direct Loan Reduction Request, which is 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.
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.
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 studentaid.gov.
You can change repayment plans at any time by going to studentaid.gov and logging in to your account.
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 studentaid.gov.
The U.S. Department of Education (DOE) offers several loan forgiveness programs for Teachers and Public Service. For additional information, go to studentaid.gov.
Contact the Federal Direct Loan Servicing Center at studentaid.gov or toll-free at (800) 848-0979
