What Is The Federal Direct Loan Program' title='What Is The Federal Direct Loan Program' />Federal Direct Parent PLUS Loan. The Federal Direct Parent PLUS loan is part of a federal program and is available to the parents of dependent undergraduate students. This is a credit based loan, and the interest rate is determined annually by the Department of Education. Federal Student Aid, an office of the Department of Education, provides information on the most current interest rates. Repayment begins within 6. How to Apply. Submit the Free Application for Federal Student Aid FAFSA. Include the American University FAFSA school code, 0. Complete and submit the Parent PLUS application and Master Promissory Note MPN. The Federal Direct loan program will complete a credit check and notify you immediately if you are approved. The Federal Direct loan program will forward your application on to our office to verify enrollment and eligibility. If eligible, a revised award letter will be available on the student portal once this has been reviewed. PLUS Loan Denial. Hp Psg Font here. If your PLUS Loan is denied, then you may still be eligible to re apply using an endorser co signer. If applicable, information about this option will be sent to you from the Federal Direct Loan program. If you are unable to secure a PLUS loan, then your student may be eligible for an additional Federal Direct Unsubsidized loan of either 4,0. You will be given the option to pursue the additional unsubsidized loan upon notification of your credit denial by the Direct Loan program. Federal student loans for collegecareer school include Direct Subsidized and Unsubsidized Loans, PLUS loans, Direct Consolidation Loans, and Perkins Loans. FEDERAL DIRECT LOAN REQUEST FORM. All eligible students who complete the FAFSA will be considered for the Federal Direct Loan Program. The Financial Aid office will receive the notice of denial and your request for additional unsubsidized loan automatically from the Direct Loan program and an offer of that loan will be made to your student.