Student/Parent Loan Information

Maximum annual loan limits based on grade level for dependent undergraduate students are as follows:

• $3,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Freshmen (0-23 credits earned) = $5,500 TOTAL
• $4,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Sophomore (24-53 credits earned) = $6,500 TOTAL
• $5,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Junior/Senior (54+ credits earned) = $7,500 TOTAL

Whether loan is Subsidized is based on financial need as determined by the FAFSA. If student as no financial need, total annual Unsubsidized Student Loan eligibility would be: $5,500 as a freshman, $6,500 as a sophomore, $7,500 as a junior or senior.

Maximum annual loan limits per grade level for independent undergraduate students or for dependent undergraduate students whose parents are denied on the Federal Direct PLUS Loan are as follows:

• Freshman: $3,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $9,500 TOTAL
• Sophomore: $4,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $10,500 TOTAL
• Junior & Senior: $5,500 Subsidized Federal Direct Student Loan + $7,000 Unsubsidized Federal Direct Student Loan = $12,500 TOTAL

To receive the Federal Direct Student Loan, first-time borrowers at Andrew College must do the following:

1. Complete a Master Promissory Note (MPN) at http://studentaid.gov/
2. Complete an Entrance Counseling Session

• Step 1: Head to the Federal Student Aid website – your central hub

The Parent PLUS Loan application for the 2025-26 academic year opens April 15. Just like completing your FAFSA, your journey begins at the Federal Student Aid website. This website is the official portal for all federal student aid. Remember, this loan is specifically for parents, so you will need them to log in using their own FSA ID and password, not your own. This is an important distinction – using a student login will lead to processing errors.

• Step 2: Locating the PLUS loan application

Once logged in, look for the “loans and grants” tab.

Within this section, find “get a loan” and then select “grad PLUS and parent PLUS.”

You’ll be presented with various loan options, but for this purpose, choose the “direct PLUS loan application for parents.”

• Step 3: Verification and credit check preparation

Before diving into the application, your parent will need to verify that they haven’t placed a freeze on their credit report. If their credit is frozen, they’ll need to contact the credit bureaus to temporarily lift the freeze. This step is essential because the PLUS loan requires a credit check.

• Step 4: Entering essential details – award year and student information

The next step involves specifying the award year for which they’re applying. Your parent will also need to provide your student information, including your Social Security number and potentially your date of birth. Ensure this information is accurately displayed before moving on.

• Step 5: Designating the school

Your parent will need to indicate the school where the loan proceeds should be sent. Search for the institution by state and name (e.g., California, University of the Pacific). They will need to double-check that they’ve selected the correct school before proceeding.

• Step 6: Specifying application type and loan amount

Choose “new” if this is their first time applying for a PLUS Loan. Then, your parent will need to decide how much they want to borrow. There are a few options:

Maximum amount: This allows the school to determine the maximum loan amount based on your cost of attendance and other financial aid.

Specific amount: If they know the exact amount you need, enter it here. Remember to factor in the loan fees, which as of March 2025 are approximately 4%. They can use the calculator provided on the web page to ensure your family borrows enough to cover the actual costs.

Unknown amount: While this option exists, it’s not recommended. Schools will likely follow up, which will delay the process.

• Step 7: Defining the loan period and deferment options

In this section, specify the loan period, typically one academic year (e.g., August 2025 to May 2026). It’s important to understand that PLUS Loan applications are for one school year only, not for the entire duration of your education.

Your parent will also be asked about deferment. This allows them to postpone payments while you’re enrolled at least half-time and for an additional six-month grace period after you graduate or stop attending school. Electing deferment is generally recommended.

It’s important to remember that PLUS Loans still accrue interest during deferment periods. This means that while your parent is not required to make payments, the loan balance is still growing due to interest.

• Step 8: Loan usage and disbursement

Your parent will need to indicate whether they want the loan to cover other education-related charges, such as lab fees. Then, they will decide whether to receive any excess funds or have them sent directly to you, the student.

• Step 9: Relationship and other verifications

Your parent will need to clarify their relationship with you (biological, adoptive or step-parent) and confirm your citizenship status. Only U.S. citizens, nationals, permanent residents or other eligible non-citizens are eligible for the PLUS Loan.

Next, your parent will need to verify their address, contact and employer information. Finally, they’ll authorize the Department of Education to conduct a credit check.

• Step 10: Review, submit and credit decision

Your parent will need to carefully review all the information they’ve entered before submitting the application. They will receive an immediate credit decision:

Approved: Proceed to complete the master promissory note (MPN).

Denied: Your parent will have options that include appealing the decision, using an endorser or increasing your unsubsidized loan.

If approved, complete the MPN on Federal Student Aid website. This is a legally binding agreement to repay the PLUS loan.