The Federal Direct Parent PLUS Loan are unsubsidized loans for biological or adoptive parents of dependent students. Parent PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. The FAFSA application is required to be completed to be able to process a Parent PLUS Loan. The lender is the U.S. Department of Education and you can learn more about this loan, the current interest rate and loan fee through the Federal Direct PLUS Loan Program.
Approval for the Parent PLUS Loan is based on a parent's credit check for adverse credit history and the undergraduate student being enrolled at least half-time in a degree program. Your parent can complete a PLUS Request on the Department of Education's website to apply for the Parent PLUS Loan (A parent is required to use their FSA ID to complete the PLUS Request).
If a parent is denied for a Parent PLUS Loan, then the parent may:
Repayment typically begins 30 days after full disbursement of the loan and a parent will have 10 years to repay the loan. There are several repayment plans available which can be reviewed at the Federal Student Aid website.
There are a number of advantages in considering the Parent PLUS loan over a private educational loan. As a family you should decide which loan option best suits your needs. There is no obligation to accept this loan if approved.
First time Direct Parent PLUS Loan borrowers must complete the following requirement before a loan disbursement will be applied to his/her child's account.
Step 1: To apply for a Parent PLUS Loan:
If you are a first-time parent borrower, then you will need to complete the following:
Step 2: Complete a Parent PLUS MPN
If a parent successfully appeals or obtains an endorser, the parent borrower is required to complete online credit counseling for PLUS Loan borrowers. The PLUS Credit Counseling will help parents understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.
Complete Online Credit Counseling Only for an Appeal or Endorsed PLUS Loan
*If you do not remember your FSA ID, you can access it online at fsaid.ed.gov