Borrowers can pay the accumulating interest while in school or may capitalize the interest. A student who has financial need will receive a subsidized loan, or a combination of a subsidized loan and unsubsidized loan. Students who have no need will receive only unsubsidized loans. Students who meet the Federal Title IV definition of self-supporting may receive an additional amount of unsubsidized loan. Program A Direct PLUS Loan enables parents to borrow for their dependent children.
Parents can borrow up to the cost of education minus all other aid received.
Applicants do not have to demonstrate need. However, the U.S. Department of Education approves a loan from this Federal Title IV program only after an evaluation of the parent borrower's credit history. The U.S. Department of Education is the lender.