The Federal Direct Loan Program consists of subsidized and unsubsidized loans, as well as parent or PLUS Loans. A parent may borrow up to the student's cost of attendence less any financial aid for the school year. PLUS loans require a good credit history but the loan is not based on financial need. If a parent is denied, the student will be eligible for additional Unsubsidized Stafford Loan funds. (freshman and sophomores $4,000, juniors and seniors $5,000).
Payments on this type of loan begin 60 days after the second disbursement and have flexible repayment options ususally up to ten years. The student must be enrolled at least half time for parents to qualify.
More information about PLUS loans is available at www.studentloans.gov.