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Direct Parent PLUS Loan

Parents of dependent students may apply for loans from a non-need-based program called the Federal Direct Parent PLUS Loan Program. The parent may borrow an amount up to the cost of attendance minus other financial aid. At disbursement, the funds will first be transferred into the student's University account to pay for school charges. If any money remains, the parent of the student will receive the balance unless the parent designates that the student should be the recipient.

Details

  • Parent must apply for the Parent PLUS each time they borrow through the PLUS program. The application can be completed at StudentLoans.gov
  • You may not borrow more than your cost of attendance less other aid received.
  • For current interest rates please visit studentaid.gov
  • To complete MPN: Log in to StudentLoans.gov; Click Complete Master Promissory Note and then select Parent PLUS.

Eligibility

Parent PLUS Loans

  • You need to be the natural or adoptive parent of the student for whom the Federal PLUS Loan is being borrowed. A step-parent is also eligible to borrow.
  • You need to be a U.S. citizen, U.S. national, or permanent resident of the United States.
  • Your child needs to be an eligible dependent undergraduate student who is enrolled at least half time in a program leading to a degree or certificate.
  • Student needs to have a current FAFSA on file.
  • You and the student must not be in default on a federal student loan and must not owe a refund on a federal education grant.
  • You need to meet specified credit requirements.
    • If parents are denied a PLUS loan due to adverse credit, the student will become eligible for additional unsubsidized Direct (Stafford) loans. Amounts vary depending on the student's academic level. The student may complete a Request for Additional Direct Unsubsidized Loan form.
    • Parents may request a co-signer/endorser if denied the loan. If a co-signer/endorser is requested, the student would lose eligibility for additional unsubsidized loans in their own name.
    • In addition to potentially being eligible for additional Direct Unsubsidized Loan funds if one of their parents is denied a PLUS Loan, dependent students may also be eligible for additional unsubsidized loan amounts if there are exceptional circumstances which prevent a parent from borrowing a PLUS loan and they complete a Direct PLUS Denial Exemption form. Exceptional circumstances may include:
      • The parent is incarcerated
      • The parent has filed for bankruptcy and can provide a letter from the bankruptcy court or their attorney stating that as a condition of the bankruptcy filing, the parent may not incur any additional debt.
      • The parent of a dependent student is not a U.S. citizen or permanent resident, or is not able to provide evidence from the U.S. Citizenship and Immigration Service that he or she is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident.

Borrowing Limits for PLUS Loans

  • You may not borrow more than your cost of attendance less other aid received.

Interest Rates

  • Fixed interest rate
  • Interest begins to accumulate on the date of the first loan disbursement.
  • An origination fee is deducted before disbursement for loans
  • For current rates please visit StudentLoans.gov

Repayment

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