First	Year $9,500 $3,500
Second	Year $10,500 $4,500
Third	Year	and	Beyond $12,500 $5,500
Criteria	for	Dependent	Students	to	Receive	Additional	Direct	Unsubsidized	Loan	Funds
Dependent	students	whose	parents	are	unable	to	borrow	Direct	PLUS	Loans	due	to	adverse	credit	or	other	exceptional
circumstances	may	receive	additional	Direct	Unsubsidized	Loan	funds	up	to	the	same	amount	that	is	available	to
independent	undergraduate	students.	Because	Direct	PLUS	Loans	can	be	made	for	up	to	the	full	COA	minus	other	financial
assistance	received,	the	additional	Direct	Unsubsidized	Loan	amount	may	not	be	sufficient	to	substitute	entirely	for	the
amount	a	parent	could	receive	under	the	Direct	PLUS	Loan	program.	Therefore,	you	should	determine	whether	the
parents	may	be	able	to	borrow	a	Direct	PLUS	Loan	by	obtaining	an	endorser	who	does	not	have	an	adverse	credit	history
before	originating	additional	unsubsidized	loan	amounts	for	the	dependent	student.	Before	a	dependent	student	can
receive	the	additional	Direct	Unsubsidized	Loan	amount,	you	must	document	the	basis	of	the	student9s	eligibility.	Some
basic	guidelines	for	making	this	determination	are	discussed	below.	However,	keep	in	mind	that	none	of	the	following,	by
themselves,	are	sufficient	to	make	a	dependent	student	eligible	for	additional	Direct	Unsubsidized	Loan	funds:
The	parent9s	unwillingness	to	borrow	a	Direct	PLUS	Loan	(even	though	the	parent	would	otherwise	be	eligible	to
borrow);
The	school9s	decision	not	to	participate	in	the	Direct	PLUS	Loan	program;	or
The	financial	aid	administrator9s	belief	that	the	parent	should	not	borrow	a	Direct	PLUS	Loan.
General	Guidelines	for	Determining	That	a	Dependent	Student	May	Receive	Additional	Unsubsidized	Funds
The	sections	that	follow	provide	general	guidelines	for	making	a	determination	that	a	dependent	student	is	eligible	to
receive	additional	Direct	Unsubsidized	Loan	funds	under	various	circumstances.
Only	One	Parent	Has	Applied	for	a	Direct	PLUS	Loan	and	Been	Denied
If	only	one	of	a	student9s	parents	has	applied	for	a	Direct	PLUS	Loan	and	been	denied	based	on	adverse	credit,	you	may
award	additional	Direct	Unsubsidized	Loan	funds	on	that	basis,	without	first	determining	whether	there	is	another	parent
who	could	take	out	a	Direct	PLUS	Loan.	However,	if	both	parents	apply	independently	and	one	is	approved	and	the	other
denied,	the	dependent	student	is	not	eligible	for	the	additional	unsubsidized	loan	amounts.
A	Previously	Approved	Parent	Later	Requests	Additional	Direct	PLUS	Loan	Funds	and	Is	Denied
The	dependent	student	may	become	eligible	at	any	time	during	an	academic	year	if	a	parent	has	first	been	approved	and
then	later	denied	a	Direct	PLUS	Loan.	For	example,	if	a	parent	was	approved	for	and	received	the	full	amount	of	a	Direct
PLUS	Loan	for	a	fall-spring	loan	period,	but	the	parent	is	subsequently	determined	ineligible	due	to	having	an	adverse
credit	history	when	they	request	additional	Direct	PLUS	Loan	funds	later	during	the	spring	semester,	you	may	award
Increased	Direct	Unsubsidized	Loan	Eligibility	for	 Independent	Undergraduates	and	Certain
Dependent	Undergraduates
34	CFR	685.203(c)
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