Office ofFinancial Aid

Educational loans

A loan is a form of financial aid that must be repaid, with interest. Few students can afford to pay for college without some form of education financing. Many students find that they must supplement their savings with educational loans which usually do not require repayment until after completing school or dropping below half time enrollment.

Loan Types

  1. Federal Subsidized & Unsubsidized Direct Loans - The Federal Direct Loan is a long term loan with a fixed interest rate.  The interest on the need-based, subsidized loan does not accrue while the student is enrolled at least half time or in the grace period.   The unsubsidized loan is not based on financial need and interest accrual begins upon loan disbursement. Loan funds are borrowed directly from the federal government through the U.S. Department of Education.
  2. Federal Perkins Loans - A Federal Perkins Loan is a low-interest loan for students with financial need. The loan is made with government funds with a share contributed by PLU. You must repay this loan to PLU.
  3. Federal Parent PLUS Loans (Loans to Parents) - A Federal Loan that parents borrow on behalf of their dependent student. Unlike the Direct loans, the loan repayment responsibility belongs to the parents. The PLUS loan helps parents pay for their son's or daughter's education over an extended period of time with a fixed rate interest loan.  Eligibility for the Parent PLUS loan requires a credit worthy parent or endorser and funds are borrowed directly from the federal government through the U.S. Department of Education.
  4. Federal Grad PLUS Loans (For graduate students only) – A Federal loan that allows credit-worthy graduate students to borrow the cost of their education not covered by other forms of financial aid. Repayment on this loan is deferred while the student is enrolled at least half time and has a fixed interest rate of 7.9%  Funds are borrowed directly from the federal government through the U.S. Department of Education.
  5. Alternative Loans - Also known as private loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.
  6. Federal Nursing Loans - If you're a student enrolled in the school of nursing, then you may be eligible for a Federal Nursing Loan.

Code of Conduct

Pacific Lutheran University administers its loan programs in accordance with the following code of conduct:

  • There is no revenue sharing arrangement with any lender,
  • No gifts of more than nominal value (as defined in regulation) are accepted from lenders, guarantors, and loan servicers,
  • No compensation is accepted for any consulting services offered to lenders,
  • No lenders are assigned to first-time borrowers,
  • We will certify any student loan application from any participating lender,
  • We do not participate in any "opportunity pool" with any lender,
  • No lender may assume any function performed by the financial aid office staff,
  • No compensation is accepted to participate on any (lender, guarantor, or loan servicer) advisory board, except for reasonable expenses incurred (as defined in regulation) as a result of that service.