Finance & Student Services

Types of Loan Available to US Students

There are 3 types of loan available to students through the Federal program. These are the Direct Subsidized, Direct Unsubsidized and Direct PLUS loans. If you are a graduate you can apply for a PLUS loan in your own right. If you are an undergraduate student you cannot apply for the PLUS, but your parents can apply on your behalf.

Direct Subsidized

Only available to undergraduate students with demonstrated financial need. No interest is charged while a student is enrolled at least half-time at London Contemporary Dance School, during the grace period and during the deferment period.

Direct Unsubsidized

Available to undergraduate and postgraduate students. Not based on financial need; interest is charged during all periods, even during the time a student is at London Contemporary Dance School and during grace and deferment periods.

Direct PLUS – see ‘What is a Plus loan’ below

PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. PLUS loan borrowers must not have an adverse credit history and a credit check will be required before a loan can be approved.

Loan consolidation

If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. If you consolidate, you will have just a single monthly payment. Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan.

To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).

What is a Plus Loan?

Parent PLUS and Graduate PLUS loans are applied for in the same way as Stafford loans. Unlike the Stafford Loan, however, the Graduate and Parent PLUS loans are subject to an adverse credit history check. Both PLUS loans are presently fixed at a 7.9% interest rate.

Parent PLUS loans are federal loans taken out by a parent on behalf of a student and are only available to students under age 24 who are studying at undergraduate level. If the parents are denied on their application for a Parent PLUS loan, their child (the student) is eligible to be considered "independent" for Stafford loan purposes. Please alert us as soon as possible if your PLUS loan is denied and provide us with the relevant supporting paperwork so we can adjust the Stafford loan amounts accordingly.

While Parent PLUS loans generally go into repayment immediately, a parent borrower can request to defer repayment during the student's studies and/or for an additional 6 months after the student graduates. Parents must request to have their loan deferred directly through the lender.

Graduate PLUS loans are available to postgraduate students (MA only) and are borrowed by the student. Graduate PLUS loan borrowers must apply for the maximum Stafford loan available to them before being allowed a Grad PLUS. This loan, like the Parent PLUS, can also be deferred during your studies but you must request this yourself, with the lender, otherwise the loan will go into repayment immediately.

Do I need a credit check?

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible to receive a PLUS Loan, you must not have an adverse credit history. If you are determined to have an adverse credit history, you may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan.

If you are a parent borrowing on behalf of your dependent student, the endorser may not be the student on whose behalf you (the parent) obtain a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.

 

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