The Direct PLUS loan, provides parents (Direct PLUS) and students (Direct Graduate PLUS) with competitive rates and repayment terms. The parent(s)’ creditworthiness is considered in determining their eligibility.
The Direct PLUS loan may be used by the parent of a dependent student (Direct PLUS) or a graduate student (Direct Graduate PLUS) who has borrowed the maximum amount of Direct Loan assistance. The loan is available to students regardless of the level of financial need. Direct Loans are funded by the U.S. Department of Education through Villanova University and are managed by federal loan servicers, under the supervision of the Department of Education. If you are a dependent student, your parent(s) can borrow up to your cost of education less all other financial aid received. Graduate students are also eligible to borrow up to their total cost of education less all other financial aid received. Direct PLUS Loans are not based on need but rather on the borrower's creditworthiness.
Villanova parents who wish to apply only for a Direct PLUS Loan for the 2013-2014 academic year are required to complete the FAFSA.
Parents and Graduate students can borrow up to an amount equal to the cost of attending Villanova, less any other financial aid received. This would include grants, scholarships, and other loans including the Direct Loan. Since interest is not paid by the Federal Government, family income has no impact on how much you can borrow.
Direct PLUS and Direct Graduate PLUS Loans are funded by the U.S. Department of Education through Villanova University. Under the supervision of the Department of Education, the following servicers are assigned to manage all Direct Loans:
Servicers for Federal Loans:
Aspire Resources Inc. - Phone: 855-475-3335 - Website: www.AspireResourcesInc.com
CornerStone - Phone: 800-663-1662 - Website: www.MyCornerStoneLoan.org
Direct Loan Servicing Center (ACS) - Phone: 800-848-0979 - Website: www.myedaccount.com
Department of Education Student Loan Servicing Center (ACS) - Phone: 800-835-4611
EdManage - Phone: 855/479-0490 - Website: www.EdManage.MyEdLoan.com
ESA/Edfinancial - Phone: 855/337-6884 - Website: www.edfinancial.com/DL
FedLoan Servicing (PHEAA) - Phone: 800/699-2908 - Website: www.myfedloan.org
Granite State – GSMR - Phone: 888/556-0022 - Website: www.gsmr.org
Great Lakes Educational Loan Services, Inc. - Phone: 800-236-4300 - Website: www.mygreatlakes.org
KSA Servicing - Phone: 877-292-4825 - Website: www.ksa.myedloan.com
MOHELA - Phone: 888-866-4352 - Website: www.mohela.com
Nelnet - Phone: 888-486-4722 - Website: www.nelnet.com
OSLA Servicing - Phone: 866-264-9762 - Website: www.osla.org
Sallie Mae - Phone: 800-722-1300 - Website: www.salliemae.com
VSAC Federal Loans - Phone: 888-932-5626 - Website: www.VSACFederalLoans.org
One-to-two weeks after the first disbursement, parents/students will receive a mailing notifying them of their selected loan servicer.
Fees are deducted from the loan funds and are included in the amount a parent will pay back. The U.S. Department of Education charges a loan fee of 4.204 percent of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each disbursement of your loan.
All loans disbursed between 7/1/13 through 6/30/14 will be subject to a fixed interest rate of 6.41%.
For parents of dependent undergraduate students, repayment normally begins within 60 days after the loan has been fully disbursed. Parents may request an in-school deferment of repayment until after the student's graduation.
Graduate students will automatically receive an in-school deferment while they are enrolled at least half-time. Once you graduate, or drop below half-time status, repayment will begin within 60 days after your enrollment status has changed.
Direct PLUS Endorser Alternative
An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower does not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to the Department of Education's satisfaction that there are extenuating circumstances related to your adverse credit history.