Undergraduate Federal Student Loans
To apply for a Federal Direct loan(s), you must complete the Free Application for Federal Student Aid (FAFSA), be enrolling in a minimum of 6 credit hours in degree pursuant courses and be meeting Satisfactory Academic Progress.
Subsidized and Unsubsidized Student Loans
In addition to completing the FAFSA, all first-time borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) before loan funds can be disbursed to their student account.
The amount of subsidized and/or unsubsidized loans you are eligible for is based on grade level, dependency status, financial need, and cost of attendance.
| Undergraduate Annual Limits For Direct Student Loans | Subsidized | Total (Subsidized & Unsubsidized) |
|---|---|---|
| Dependent – Undergraduate Students | ||
| First Year (0 to 29 credits) | $3,500 | $5,500 |
| Second Year (30 to 59 credits) | $4,500 | $6,500 |
| Third Year & Beyond (60+ credits) | $5,500 | $7,500 |
| Independent or Dependent Student with a Current Parent Plus Denial | ||
| First Year (0 to 29 credits) | $3,500 | $9,500 |
| Second Year (30 to 59 credits) | $4,500 | $10,500 |
| Third Year & Beyond (60+ credits) | $5,500 | $12,500 |
In addition to annual limits, the Department of Education has limits on the amount a student can borrow overall in pursuit of their undergraduate degree.
| Aggregate Limits For Direct Loan | Subsidized | Total (Subsidized & Unsubsidized) |
|---|---|---|
| Dependent – Undergraduates | $23,000 | $31,000 |
| Independent – Undergraduates | $23,000 | $57,500 |
Repayment
Repayment begins 6 months after you have withdrawn, graduate or dropped below 6 credit hours. Students are required by federal regulation to complete the exit counseling requirement. A financial hold will be placed on your account until we receive notification it has been completed.
Loan Facts:
- Interest rates on Federal Direct Loans are fixed, meaning the interest rate on the amount borrowed for an academic year will remain the same for the life of the loan.
- An origination fee is retained by the federal government for federal loans. It is a percentage of the amount of the loan, and it is deducted before the loan disburses to the institution. This means the loan amount accepted and borrowed will be different from the amount that disburses. You can refer to https://studentaid.gov/understand-aid/types/loans/interest-rates for additional information on Fees for Federal Student Loans.
- A borrower has 120 days to return any portion of a federal loan to the institution without being assessed any interest or fees on the amount returned.
FAQ
Direct Parent Plus Loan
Parents of dependent undergraduate students who borrow a parent PLUS loan on or after July 1, 2026, may borrow up to $20,000 per year per student with an aggregate limit of up to $65,000 per student.
It's important to note that these limits are combined limits — meaning if multiple parents apply for a PLUS loan for their student, the combined total for all PLUS loan borrowers cannot exceed $20,000 for the year or the $65,000 aggregate limit per student.
Under the legacy provision, parents of dependent undergraduates who have borrowed a parent PLUS loan or their student borrowed a subsidized or unsubsidized that disbursed before July 1, 2026, may be able to continue borrowing with no changes in eligibility of their annual limit for parent PLUS loans.
Plus loans are federal loans in the parent's name for their student's educational expenses. The parent borrower must not have an adverse credit history, and the maximum loan amount is the cost of attendance minus any other financial aid received. Only parents of undergraduate, dependent students can apply for this loan.
CU requires the Plus Application to be submitted through the FSA website located at https://studentaid.gov/plus-app/parent/landing. The application typically become available in early to mid-April for the upcoming academic year. If approved, the parent will then go on to complete a Parent Plus Master Promissory Note (MPN).
Reminders and Tips
- Your parent must log in with their FSA user id and password to apply (not the student's).
- Make sure to select the correct award year on the application (Example: Fall 2026 and/or Spring 2027 would be in the 26-27 year
- You can apply for both Fall and Spring by using an award date range from August 2026-May 2027. Or by the semester; i.e Fall 2026 with an award date range from August 2026-December 2026 and Spring 2027 with an award date range from January 2027-May 2027.
- Be sure to add Concord University as a school to be notified
What do I do if I have been denied?
- Obtain an Endorser: You may qualify for a Direct PLUS Loan by obtaining an endorser (similar to a cosigner) who does not have an adverse credit history. A credit check will be performed on the endorser. The endorser agrees to repay the loan if you do not. If you are a parent borrower, the endorser cannot be the student on whose behalf you are borrowing.
- Appeal Based on Extenuating Circumstances: You may request reconsideration by documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.
- Additional Unsubsidized Loan Eligibility: If the Direct PLUS Loan is denied and you choose not to pursue an endorser or appeal, the student may be eligible to receive an additional Direct Unsubsidized Loan. Depending on the student's grade level and cost of attendance, this additional amount is typically $4,000–$5,000 per academic year.
If you qualify by obtaining an endorser or by documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history, you'll also be required to complete PLUS counseling before you can receive a Direct PLUS Loan.
If you apply for a Direct PLUS Loan and are notified that you have an adverse credit history, you'll be given detailed information on the options for qualifying by obtaining an endorser or submitting documentation of extenuating circumstances, along with instructions on how to complete the required PLUS counseling.
For more information contact the U.S. Department of Education Student Loans Support Center at 800-557-7394.
