The 20-year-old, who is a regular in the Reds' Under-21 development side will stay at Brunton Park until January 1, though boss Graham Kavanagh is hopeful the deal could be extended.
Kavanagh told the club's official website: "Craig is a very good prospect. He's played most of his career with Liverpool and it goes without saying that he has had a fantastic grounding in the game.
"He's a player I have watched a lot and he has a huge amount of potential. He's definitely one for the future.
"He's technically decent and he puts demands on everyone around him, even in the training sessions that we've had as a group. It's an initial one-month spell with us and things could develop further with him once we get into the January window."
Meanwhile, midfielder Josh Gillies has joined Skrill Premier leaders Cambridge on a month's loan.