Federal Direct Loan Program

Federal Direct Loan Program

2024-25

The University of Rhode Island participates in the Federal Direct Loan Program. This program includes both student Subsidized and Unsubsidized loans, as well as Parent (PLUS) loans. The University receives funds directly from the U.S. Department of Education and disburses them to eligible students. You must file a FAFSA for the year in which you wish to receive the loans in order to be eligible for these loans. You will need your FSA ID number to complete the Master Promissory Note.

  • PLUS Loan Interest rate – 9.083%
  • PLUS Loan Origination fee – 4.228%

Parents borrowing through the Federal Direct Parent Loan Program (PLUS) for the first time at URI must complete the following steps:

  1. Complete a credit check for a Plus Loan. Located under “Apply for Aid” and “Apply for a Plus Loan.” Login using your parent FSA ID and password as used to complete the FAFSA. If approved, continue with Steps 2 and 3.
  2. Complete a Master Promissory Note (MPN) for parents electronically. Located under “COMPLETE AID PROCESS” choose “Complete Master Promissory Note” and then choose the option “PLUS MPN for Parents.”
  3. Complete the URI supplemental Parent Loan Application. Under “Academic Year” be sure to select “Aid Year 2025.”

Credit Checks: Direct Parent (PLUS) Loan borrowers will be able to authorize and initiate a credit check via the Direct PLUS Loan Request process. The borrower will receive the results of a borrower-initiated credit check immediately. The credit check decision will be good for 180 days.

  • If the credit check is not approved, the borrower is asked how they want to proceed; options are as follows:
    • Obtain an endorser for the PLUS Loan.
    • Appeal the credit decision.
    • Discontinue pursuing a PLUS Loan; and if desired, your student can request an additional $4,000 in an Unsubsidized Loan by contacting URI Enrollment Services.
  • Regardless of the borrower’s choice, a paper endorser package will always be sent to the borrower.

Note: Returning Parent loan applicants with an MPN on file, need only complete the credit check (step 1) and URI supplemental application (step 3) each academic year.

Direct Parent PLUS Denial Information

If your parent is denied for a Direct Parent PLUS loan, you have three options you may pursue.

  1. The student may receive additional Direct Unsubsidized Stafford loan funds. To accept their additional Direct Unsubsidized Stafford loans, the student must:
    • Contact Enrollment Services and state you would like to receive additional Direct Unsubsidized Stafford loans funds based on the PLUS denial.
    • Once Enrollment Services confirms that your Direct PLUS loan was denied, the loan will be offered on your account. The amount that a student is eligible for in additional Direct Unsubsidized Stafford loan funds is determined by their class year.
    • Freshman: Eligible for up to $4,000 in additional funds
    • Sophomore: Eligible for up to $4,000 in additional funds
    • Junior & Senior:  Eligible for up to $5,000 in additional funds. If students decide to pursue this option, they will not be eligible for a Direct PLUS loan.
  2. Appeal your credit decision with the U.S. Department of Education. You may pursue this option by visiting here where you completed your credit check or by calling 1-800-557-7394 (Federal Loan Origination Center). To appeal your credit decision online:
    • Login using the parent borrower’s information (SSN & FAFSA PIN).
    • Select the “Appeal Credit Decision” link under the PLUS Process section on the left side menu
    • Follow the instructions provided to complete the appeal process. After completing your appeal online, you should receive a call from a representative at the Federal Loan Origination Center within 3 business days to discuss your appeal. If you do not receive a call, you may contact the Federal Loan Origination Center at 1-800-557-7394 to discuss the status of your appeal.
  3. Reapply with an endorser (co-signer). To apply for an endorser (co-signer):
    • Login using the borrower’s information (SSN & FAFSA PIN).
    • Select the “Endorse PLUS Loan” link under the PLUS Process section on the left side menu
    • Follow the instructions provided to complete the endorser process. You will need your Loan Reference Number to complete the endorser process. This number was provided during your original credit check. If you do not have your number, you may contact the Federal Loan Origination Center at 1-800-557-7394.