Federal Direct Parent PLUS Loan
Federal Parent PLUS Loans are available to parents of dependent undergraduate students to help them pay for their child’s college education expenses up to the cost of attendance minus all other financial assistance.
- A FAFSA must be submitted before a Parent PLUS loan can be certified.
- Parents are required to borrow their PLUS funding through the Direct Loan program.
- The Federal Direct Parent PLUS application process requires an approved credit check from the U.S. Department of Education.
- A parent will need to complete a master promissory note (MPN) if they are borrowing a Direct PLUS for the first time for this student. If they borrowed previously, only the application/credit preapproval is required each time a loan is requested.
- Effective Fall 2021, an Annual Student Loan Acknowledgement must be completed once each academic year by any borrower requesting Federal Direct PLUS Loan funds.
- Interest is charged from the date of the first disbursement and accumulates.
- Repayment begins 60 days after the loan is fully disbursed. A deferment while the student is enrolled at least half-time can be requested.
- A Parent PLUS borrower must be a U.S. citizen or eligible non-citizen and not be in default on any other federal loan.
- A Parent PLUS Loan will be certified after receipt of both an approved credit decision AND a valid PLUS MPN.
- If a Parent PLUS application is denied, the parent has the option to include an endorser/co-signer on the application or appeal the credit decision with the Department of Education.
- The endorser must complete an Endorser Addendum which requires that the endorser undergo a credit review.
- The Department of Education will require PLUS Loan counseling for any PLUS applicant who qualifies for a PLUS Loan through an appeal process or by obtaining an endorser for the loan.
- If the parent decides not to add an endorser or appeal, a dependent student becomes eligible for additional Federal Direct Unsubsidized Loan funds. In this case, if the parent indicated they wanted the student to be considered for this loan, the Financial Aid Office will certify the Unsubsidized Loan. Otherwise, the student can email firstname.lastname@example.org asking for the Unsubsidized loan to be offered based on the denied Parent PLUS Loan.
- The Financial Aid Office will be notified if the parent is approved for the Parent PLUS loan. It can take two to three weeks to see the loan reflected on the student’s PAWS account. This timeframe can vary depending on the time of the year.
- Parent PLUS applications for the upcoming fall/spring school year become available May 1 of each year.
- A Parent PLUS Loan cannot be used to cover an outstanding account balance from a prior school year.
- Not sure which is for you? Compare PLUS and Private Loans side by side.
- Find additional information on Federal Direct Loans at the U.S. Department of Education website.
- Parent PLUS Overview
- Parent PLUS Master Promissory Note Tips
Interest Rates and Origination Fees
Interest rates depend on the loan type and the first disbursement date of the loan. Origination fees of approximately 4% are deducted from each disbursement. Please click here for the most recent information on interest rates and origination fees.