Federal Direct PLUS Loan for Undergraduate Students
- Columbia College has been approved by the Secretary of Education to participate in the Federal Direct Student Loan Programs (FDSLP) and Federal Direct Parental Loan Program (FDPLP). Columbia does not participate in the Federal Family Educational Loan Program (FFELP).
- The FDSLP and FDPLP programs allow students and parents to borrow directly from the Treasury of the United States, rather than from a lender such as a bank or credit union. Additionally, FDSLP and FDPLP loans will not need to be "guaranteed" by an outside guarantee agency, as they are federally guaranteed.
The parent borrower and their student must meet the following criteria:
The student and parent borrower must:
- Be a U.S. citizen or eligible non-citizen
- Not be defaulted on any student loan or owe a federal grant repayment
- Meet other eligibility requirements as applicable
- Be in compliance with the Columbia College Chicago Satisfactory Academic Progress Policy (SAP)
- Be enrolled at least half-time (6 credit hours)
The parent borrower must:
- Be a biological parent
- Be an adoptive parent
- Be a stepparent, eligible only if income and assets were included on FAFSA to calculate student's Expected Family Contribution (EFC)
Please note that loans cannot be processed after the term of enrollment ends. If an application is received after the Fall term ends, the student must be registered for a minimum of 6 credit hours for the Spring term before the application can be processed.
Loan Amounts
- Parent borrowers may borrow a PLUS loan for an amount up to the student's cost of attendance minus other financial aid received. The maximum amount is listed on your student's award letter. We recommend that that you borrow the minimum amount needed to cover the student's educational costs. Complete the 'Estimate Your Costs Worksheet' to help determine your loan amount.
Loan Fees and Repayment
- An origination fee of 4% of the total loan amount is deducted from the borrowed amount by the lender. Parent borrowers are notified of this at the time of loan approval. The loan disbursement amount(s) reflect the deduction of this loan fee. For Plus Loans disbursed on or after July 1, 2006, the interest rate is fixed at 7.9%. Interest is charged from the date of the first disbursement until the loan is paid in full. Repayment begins within 60 days after the loan has fully disbursed. Federal Direct PLUS Loan information is also available at http://studentaid.ed.gov.
PLUS Loan Procedures
- A processed FAFSA application, for the award year in which the student is enrolled, must be on file with Student Financial Services prior to submitting a PLUS Loan application. To complete a FAFSA application log onto www.fafsa.ed.gov. The PLUS Loan application must be completed and submitted to Student Financial Services for processing.
- The parent borrower should complete the Electronic PLUS Loan Master Promissory Note online after receiving notification from Student Financial Services to do so. This process does require that the parent borrower have a federal PIN. To apply for a federal PIN log onto www.pin.ed.gov. Student Financial Services will continue to send notification to the parent borrower email address provided on the application until confirmation has been received from the lender that this form has been completed and processed.
- Student Financial Services determines eligibility and forwards parent borrower information to the Federal Direct Lending for credit check. Notification of credit decision will be mailed to the parent borrower by the lender.
- Student Financial Services will disburse funds to student's account as long as student meets *eligibility requirements. If the disbursed amount exceeds charges on the student's account, a refund check is issued to either the student or the parent as indicated on the PLUS Loan application (question #5).
Adverse Credit History
- If your Plus Loan is denied by the U.S. Department of Education’s Direct Loan Servicing Center due to adverse credit history and you indicated you would see an endorser, you have 14 day to obtain an approved endorser. After 14 days, if you have not obtained an approved endorser, your Plus loan application will be terminated and your student will be reviewed for an additional Federal Direct Unsubsidized Stafford Loan. The Federal Direct Unsubsidized Stafford Loan amount is awarded based on your student's grade level.
- *PLUS Loans approved with an endorser will make your student ineligible for the Federal Direct Unsubsidized Stafford Loan. *
- Please contact Applicant Services at 1-800-557-7394 for more information regarding credit appeal overrides and endorser application questions.