Loan Processes

Rockford University participates in the William D. Ford Federal Direct Loan Program for all Stafford loans.

Students

The Office of Student Administrative Services (SAS) will originate your Federal Direct Loan(s) once you are registered for classes and have accepted your student loans.  A Master Promissory Note (MPN) https://studentaid.gov/mpn/ and entrance counseling https://studentaid.gov/entrance-counseling/ is required before the loan funds will be disbursed via electronic funds transfer (EFT) to your student account. Loans cannot be processed after a student becomes ineligible or after the term has ended.

The MPN will be used for all subsidized and unsubsidized Direct loans.  Subsequent loans accepted by you will automatically be processed under the same MPN in future academic years (for up to 10 years from first disbursement). 

Parents

Rockford University participates in the William D. Ford Federal Direct Loan Program.  If you wish to borrow on behalf of your son or daughter in the Federal Parent Loan for Undergraduate Students (PLUS) program please complete the following the steps.

Current/New Parent Borrowers

All NEW and PREVIOUS parent borrowers will need to complete a PLUS loan application after April 15th. The application process determines credit eligibility. You will be required to use your FSA ID to log-in and complete the Federal PLUS application.  If approved for the loan, a completed PLUS MPN is required. If a completed Parent PLUS loan MPN is on file, a new one may not be needed.

Utilizing An Endorser

An endorser is someone who will pass the credit check and who agrees, similar to a co-signer, to repay the PLUS Loan if the borrower is unable to do so. Almost anyone can serve as an endorser. However, the student cannot serve as an endorser for their parent.

If you choose to obtain an endorser, the endorser should complete the endorser addendum at https://studentaid.gov/. The endorser will need the PLUS Endorser Code (if a Direct PLUS Loan Request was completed) or Loan Identification Number to connect the endorsement to the denied PLUS Loan. Completing the endorsement online also requires a Federal Student Aid ID (username and password).

Master promissory notes (MPNs) are used for PLUS Loans and allow for multiple years borrowing under the same terms. However, when an endorser is used, the terms of the MPN used for that loan is specific only to that loan. Therefore, a borrower who has previously received a PLUS Loan without an endorser will need to complete a unique MPN for the endorsed loan. Also, any additional PLUS borrowing will require a new MPN and endorser addendum (though the same endorser can be used).

Finally, when the borrower is initially denied and approved through use of an endorser or appeal, the borrower will need to complete the Parent PLUS counseling requirement before the PLUS Loan can be disbursed. This counseling is a review of loan and repayment obligations available at https://studentaid.gov/.

In cases of a parent credit denial or when an eligible endorser is not available the student will be eligible for an additional unsubsidized loan. Rockford University will be notified and a new award letter with the required documentation will be mailed to the student.

Federal Direct Grad PLUS loan for Graduate Students (option available only for students that meet the legacy provision)

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception.

The annual Direct Unsubsidized Loan limit remains unchanged at $20,500. However, there is a new $100,000 cap on the amount of Direct Subsidized/Unsubsidized Loans students can borrow in total (aggregate) for a graduate degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study. Students who qualify for the limited exception, described below, that allows them to continue to borrow Graduate PLUS loans are also exempt from the new Direct Loan aggregate and lifetime limits.

The One Big Beautiful Bill Act introduced changes the federal student loans beginning on July 1, 2026.  If the student meets the legacy provisions below, the Grad PLUS loan may be an option.

Legacy Provision

  • Any type of Federal Direct Loan (unsubsidized or Graduate PLUS) was disbursed to the student’s account before July 1, 2026 AND
  • The student must continuously remain enrolled in the same graduate program as they were prior to July 1, 2026
  • If you qualify for the legacy provision, the annual maximum amount is up to the student’s Cost of Attendance minus any other financial aid
  • No lifetime maximum applies
  • The legacy provision is for the lesser of 3 academic years or for the remainder of the student’s program

National Student Loan Data System (NSLDS)

Parent and student loan information (Federal Student Loans) will be submitted to the National Student Loan Data System.  Guaranty agencies, lenders and schools determined to be authorized users will have access to the loan data.  You can review your federal information at https://studentaid.gov/.