Federal Direct PLUS Loan for Parents
Federal Direct PLUS Loans are funded by the Federal Government through the Direct Loan Program. For more information on Direct loans please visit www.ed.gov/directloan.
Terms: RATE – 7.9% Fixed (interest begins accruing after the first disbursement). FEES – 4.204%.
Student FAFSA: The student MUST HAVE A CURRENT YEAR FAFSA ON FILE IN ORDER FOR YOU TO ATTAIN A FEDERAL DIRECT PLUS LOAN FOR PARENTS.
Maximum Loan Amount: Cost of Attendance less all other financial aid.
When determining the appropriate amount to borrow it is important to understand Cost of Attendance. Cost of Attendance (also known as “budget”) is the total estimated cost to attend Concordia for one year as a full-time student. Components of the Cost of Attendance include Tuition, Meal Plan, Housing, Fees, Board, Loan Fees, Misc Personal Expenses and Transportation. When completing the Direct PLUS Loan Application (Step 1 below), please be aware that if you select “maximum loan amount” you will receive a loan based on the total Cost of Attendance estimate. If your intent is to borrow only what is due to the university, please be sure to contact the Bursar’s Office at 949-214-3075 or firstname.lastname@example.org.
Step 1: Complete the Direct PLUS Loan Application
To get started, click "Sign In" under "Manage My Direct Loan" at www.StudentLoans.gov and select "Request a PLUS loan." Note: Parents MUST sign in using their own Federal Student Aid PIN (same as FAFSA PIN if you have one) – you will not be able to complete the application properly otherwise. If you don’t have a PIN or forgot your PIN, please stop and go to the Federal Student Aid PIN site here.
Please be aware that the Direct PLUS Loan Application only allows you to communicate to the university the aid year and loan amount. As a result, Concordia will set-up the loan to be disbursed evenly over the terms the student is enrolled unless otherwise notified. If your intent is for the loan to be disbursed for one term only or in uneven amounts you must email the Financial Aid Loan Coordinator with specific instructions (email@example.com). Please put Federal Direct PLUS for Parents in the subject line and reference the student’s full name and school ID (E#) in the body of the email.
Step 2: Sign the Master Promissory Note (Concordia first time PLUS for Parents borrowers only)
The electronic Master Promissory Note is also located at www.StudentLoans.gov. As in step 1 above, click "Sign In" under "Manage My Direct Loan" and select "Complete Master Promissory Note." Please be sure to sign the note labeled “Parent PLUS.”
What if I am not approved?
If you were initially declined for the PLUS loan you can either obtain an endorser (cosigner), or choose to appeal the reason you were declined.
To begin the appeal process, call the Direct Loan Servicing Center for instructions at 800-557-7394. You will receive an answer regarding your appeal within 7-10 business days of all required documentation for the appeal being received.
If you elect to use an endorser, you must start by having the endorser get their own Federal Student Aid PIN. Once the endorser’s PIN is active, they will log into the StudentLoans.gov site and select “Endorse a PLUS Loan.” The endorser must pass a credit check. If approved, they will be asked to note how much they are willing to endorse. The PLUS loan amount cannot exceed what the endorser is willing to guarantee. Lastly, the parent borrower should sign the Federal Direct PLUS Master Promissory Note. The endorser does not sign the promissory note.
PLUS loans that remain in declined status will trigger the Financial Aid Office to offer the student an additional unsubsidized loan. Freshman and sophomores (0-59.9 units) are eligible for up to $4,000.00. Juniors and seniors (60-128 units) are eligible for up to $5,000.00.
Repayment and Deferment
The repayment period for a Direct PLUS Loan begins when the loan is fully disbursed, and the first payment is due 60 days after the final disbursement. However, for Direct PLUS Loans with a first disbursement date on or after July 1, 2008, the parent may defer repayment while the student on whose behalf the parent borrowed the loan is enrolled on at least a half-time basis, and for an additional six months after the student ceases to be enrolled at least half-time. For more information pertaining to repayment, please visit the Direct Loans website.