Direct Loans

Terms and Conditions of Direct Loans


For more information on the Federal Loan Programs, see Federal Student Loan Details

Federal Direct Subsidized Student Loan

A Federal Direct Subsidized Loan is awarded on the basis of the student’s financial need and other specific eligibility requirements. The federal government does not charge interest on these loans while borrowers are enrolled at least half-time.

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan is not based on the student’s financial need, but the students must also meet specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).

Federal Parent PLUS Loan

A separate application is required for the Federal Parent PLUS Loan.

You may apply for the Federal Parent PLUS Loan by using the attached link:

Before beginning the application process, please read the important information below.

The Parent PLUS Loan is a federal Direct Loan made in the parent’s name for educational expenses of his or her dependent child enrolled at least six hours at Louisburg College. Persons eligible to apply for the Parent PLUS loan are: the student’s biological parents, adoptive parents, and, in some cases, stepparents. Legal guardians and non-adoptive grandparents or other relatives are not eligible. Other qualifications must be met and are described below.

Before considering a parent’s application for a Parent PLUS Loan, Louisburg College must receive and verify the results of the Free Application for Federal Student Aid (FAFSA) submitted by the student for whom the Parent PLUS Loan is being requested. The student is not required to accept Federal Direct Subsidized and/or Unsubsidized Loans offered on the basis of FAFSA results.

All loans are subject to Cost of Attendance limitations. No awards may be made to a student who has reached the limit of his/her financial aid cost of attendance. If additional resources are received by the student after loans have been awarded, the loans may be reduced and funds returned to the U.S. Department of Education.

If approved for the Parent PLUS Loan, the parent borrower must sign a Parent PLUS Master Promissory Note at, using his or her own Federal FSA ID (if he or she has not already done so).

Other Parent PLUS loan information


  • You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student. A stepparent and their financial information must be included in FAFSA application.
  • Your child must be a dependent student who is enrolled at least six hours at Louisburg College. Generally, your child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional-degree student, or a ward of the court.
  • In addition, you and your child must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
  • The student must meet Louisburg College’s Satisfactory Academic Progress Standard as defined in the College Catalog.

Credit Check:

  • The Department of Education performs a credit check and notifies our office with a loan approval or denial. Louisburg College will not see any information contained in your credit report.
  • Any previous credit decision (approval or denial) has no bearing on the credit decision made this year.
  • If you request a loan for more than one loan period, your credit record may be accessed more than one time.