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Repayment begins 6 months after you have withdrawn, graduate or dropped below 6 credit hours.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:

FAQ

The student is the borrower for all direct subsidized and unsubsidized loans. This means the student is responsible for repayment and completing all the requirements associated with being a student loan borrower such as the master promissory note and the online entrance counseling.

The parent is the borrower for the direct parent plus loan. This means the parent is responsible for repayment and completing all the requirements associated with borrowing 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.

Direct Parent Plus Loan

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

  1. Your parent must log in with their FSA user id and password to apply (not the student’s).
  2. Make sure to select the correct award year on the application (Example: Fall 2025 and/or Spring 2026 would be in the 25-26 year
  3. You can apply for both Fall and Spring by using an award date range from August 2025-May 2026. Or by the semester; i.e Fall 2025 with an award date range from August 2025-December 2025 and Spring 2026 with an award date range from January 2026- May 2026.
  4. Be sure to add Concord University as a school to be notified

What do I do if I have been denied?

There are two ways that you may still be able to qualify for a Direct PLUS Loan:

  • First, you can receive a Direct PLUS Loan if you obtain an endorser (similar to a cosigner) who does not have an adverse credit history. (A credit check will be performed on the endorser.) An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you’re a parent Direct PLUS Loan applicant, the endorser can’t be the child on whose behalf you are borrowing.
  • Second, you have the option of trying to qualify by documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.

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.