Federal Student Loans

• Freshmen = $5,500 ($3,500 max in a subsidized loan)
• Sophomore = $6,500 ($4,500 max in a subsidized loan)
• Junior = $7,500 ($5,500 max in a subsidized loan)
• Senior = $7,500 ($5,500 max in a subsidized loan)
• Graduate = $20,500 (All in an unsubsidized loan)

Need-based, must file FAFSA

A 1.057% federal *origination fee is deducted from loan proceeds if disbursed on or after October 1, 2020 and before October 1, 2026.

Principal and Interest deferred while enrolled at least half-time in school.

Current Interest Rates for Undergraduate Loans:

Processed between July 1, 2024 – June 30, 2025: 6.53%

Processed between July 1, 2025 – June 30, 2026: 6.39%

• Not need-based, but must file FAFSA
• A 1.057% federal *origination fee is deducted from loan proceeds if disbursed on or after October 1, 2020 and before October 1, 2026.
• Current Interest Rates for Undergraduate Loans
  • Processed between July 1, 2024 – June 30, 2025: 6.53%
  • Processed between July 1, 2025 – June 30, 2026: 6.39%
• Interest Rates for Graduate Loans
  • Processed between July 1, 2024 – June 30, 2025: 8.08%
  • Processed between July 1, 2025 – June 30, 2026: 7.94%
• Principal deferred but interest accrues while in school, borrower may pay interest or defer.

How to Apply

• At studentaid.gov, the parent borrower will need to use their FSA ID and Password to log in.
• Once signed in, you will want to “Apply for Aid” and click on “Apply for Parent PLUS Loan”.
• To complete the application, you will need to provide:
  • Personal Information
  • Employer Information (if employed)
  • Academic year (i.e. 2025-2026)
  • Student Information
  • Your deferment choice (would you like to repay loan while your student is enrolled or begin repayment after they cease enrollment)
  • Your choice for a credit balance (what to do if there are extra loan funds after academic costs are paid)
  • School Information
  • Loan Information (amount requesting and semesters)
• You will then need to review the application information and submit it for a credit check. The credit check is now good for 180 days instead of 90 days.
• If the loan is approved, the parent borrower will then be directed to complete the Master Promissory Note (for first time borrowers.)  The loan funds will be credited directly to the student’s account.  If you choose to borrow through the Direct PLUS loan program in future years, you will need to complete a new application each year, but you will not have to sign another master promissory note for that student.  The promissory note is good for up to 10 years.
• If the loan is denied, you will be given the option to appeal the credit decision, obtain an endorser* for the loan, or allow an increase in the student’s unsubsidized student loan (please select “I do not want to pursue a Direct PLUS loan at this time” for the increase in unsubsidized loan funds).  *(If you obtain an endorser for the loan, a new promissory note will need to be signed each year.)
  • For applicants who are determined to have an adverse credit history, but who qualify for a Direct Plus Loan by documenting extenuating circumstances or obtaining an endorser, MUST complete a separate loan counseling. The applicant MUST complete the counseling on the Department’s Studentaid.gov web site.

About the Parent PLUS Loan

Description

• A non-need-based federal parent loan program administered by Valparaiso University
• A FAFSA must be on file for the student.

Borrower

• Parent of a dependent undergraduate student (defined as biological, adoptive, or stepparent)

Eligibility Criteria

Borrower is:

• US Citizens or eligible non-citizens.
• Not in default on prior Title IV educational loans.
• No judgment lien or incarcerated
• (Student is) making satisfactory academic progress.

Credit Worthiness Standards

To meet the credit worthiness requirements, an applicant cannot be:

• 90 days or more delinquent on one or more debts with combined outstanding balance greater than $2,085 during the two year’s preceding credit report date.
• In the last 5 years, not subject to:
  •  default determination
  • bankruptcy discharge
  • foreclosure
  • repossession
  • tax lien
  • wage garnishment, or;
  • write-off of a Title IV debt

Should the parent be denied the Parent Plus Loan, the student may borrow an additional unsubsidized loan. They are permitted to have up to $4,000 more as freshman and sophomores and up to $5,000 more for juniors and seniors.

Annual Loan Limits

Cost of attendance less other aid

Fees

A 4.228% Loan Fee is deducted from the Federal PLUS loan before it is credited toward the charges if disbursed on or after October 1, 2020 and before October 1, 2026.

Interest Rate

• Processed between July 1, 2024 – June 30, 2025: 9.08%
• Processed between July 1, 2025 – June 30, 2026: 8.94%

Interest Subsidy

• No federal interest subsidy; Interest begins to accrue after first disbursement.

Repayment Terms

• Payment of principal and interest begins 60 days after the final disbursement.
• You can request an in-school deferment as long as your student is enrolled at least 1/2 time.
• 30 year maximum repayment period
• More information

Declining, Reducing or Changing Loan Amounts

Parents will need to provide written notification to the Office of Financial Aid if they would like to decline, reduce or change the amount of the parent plus loan. These requests can be by email, fax or by mail.