Plus Loans

What your loan pays for

If you meet all requirements, you can borrow up to your student’s estimated cost of attendance, minus any other financial aid your student receives. Your loan will pay for your student’s tuition, fees, room and board, and other eligible school charges. Any funds that remain after these items are paid will be refunded to you or your student, depending on the option you choose when you apply for the loan.

Note that a Parent PLUS Loan is figured into your student’s total financial aid package, even though you—not your student—are responsible for repaying the loan.

Learn strategies to borrow less

What happens if your application is denied?

The U.S. Department of Education (DoE) is responsible for approving or denying Parent PLUS Loans. The DoE will email you at the address you provide when you apply for the loan to notify you whether your application has been approved or denied. If your application is denied, you’ll be given information about appealing the decision or obtaining an endorser.

If you successfully appeal or if you add an endorser, the DoE will automatically notify IU and your loan will be added into your student’s financial aid package.

If your application is denied or if you cannot apply due to one or more of the reasons below, your student may be eligible to receive additional Direct Unsubsidized Loans:

  • You are incarcerated
  • Your only source of income is public assistance or disability benefits
  • You have declared bankruptcy and aren’t permitted to take on additional debt

Your student may be asked to complete a separate application to be considered for these additional loans. Note that if one parent’s application is denied and another parent’s application is then accepted, this additional funding won’t be available to your student.

Repaying your loan

While interest charges begin to accrue as soon as your student receives your loan, you don’t have to start repaying a Federal Direct Parent PLUS Loan until the funds have been fully paid out. You may request a deferment while your student is enrolled at least half-time and for up to six months after your student graduates, leaves school, or drops below half-time status. You won’t be required to make payments while your loan is deferred, but interest charges will continue to accrue.

Learn more about repaying your loan