Federal Direct Parent PLUS Loan
Federal Direct Parent PLUS Loans enable parents to receive funds from the U.S. Department of Education, to pay for their child's college education.
PLUS Loan eligibility requirements:
- Student must be a dependent student who is enrolled at least half-time (6 credit hours)
- Parent must be the biological or adoptive parent of the student for whom they are borrowing
- Parent cannot have an adverse credit history (a credit check will be performed)
- Both the parent and student must not be in default on any federal education loans or owe an overpayment on a federal education grant.
- Both the parent and student must be U.S. citizens or eligible non-citizens.
How to Apply:
- Go to https://studentaid.gov
- Parent will sign in using the parent's (Federal Student Aid) FSA ID
- Select: Request a Direct Plus Loan
- Select: Parent Plus
Complete steps 1-4
A credit check will be processed to determine eligibility. If the credit check comes back favorable, the parent will have to complete a Master Promissory Note (MPN) once the loan has been processed. The MPN will be completed on the same website, https://studentaid.gov. If the parent loan is denied, the parent may request to have an endorser for the loan or appeal the credit decision. If the loan is subsequently approved, the parent will then be required to complete Parent Plus Loan Counseling as well as the MPN on the same website.
If the parent loan is denied and the parent does not want to pursue an endorser or appeal the denial, then the student is eligible to borrow up to an additional $4000 unsubsidized loan.
Loan Amount: The maximum loan amount the parent can borrow is the student's Cost of Attendance minus any other financial aid. The Plus loan has a fixed interest rate of 7.0% for loans disbursed after 7/1/17.
Duration: Parents must apply annually for this loan.
Repayment: You will start repaying the loan once it is fully disbursed. Parents may opt to defer principal payments on their PLUS loans for up to six months after the student graduates or is enrolled less than half time. If the loan is deferred, interest will accrue on the loan during deferment. Parents can contact the Direct Loan Servicing Center at 1-800-848-0979 for more information. Once a Plus loan has been disbursed, your loan servicer will contact you with information on how and when to repay your loan.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for all federal student aid. Parents can access and view all Title IV aid previously awarded to them.
Note: Information regarding loan amounts will be submitted to the National Student Loan Data System (NSLDS). The NSLDS will allow other guaranty agencies, lenders and other authorized users to access their database.
Loan Contact Information
General Information about loans and applying for them
Federal Student Aid Information Center
Information on Consolidating your loans
Direct Loan Consolidation Center