The Federal Direct Parent PLUS Loan is an unsubsidized loan 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:
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.
Repayment typically begins thirty days after full disbursement of the loan and the student will have ten years to repay the loan. The standard repayment term is ten years and the interest rate may vary depending on the disbursement date.
Please review this sample repayment schedule to provide insight into loan repayment under the standard repayment plan. This chart is for estimating purposes only.
Visit the Federal Student Aid Site to learn more about PLUS repayment plans, deferment, discretionary forbearance and mandatory forbearance options.
You should always borrow what you need to assist with the cost of education and not just the amount that you may be eligible to borrow. After the student receives his/her award letter, if you find that you do not need all the loan amount you qualify for to cover the current years tuition and expenses, then make sure to reduce or cancel loan amount(s) not needed. This will reduce your overall student debt when you enter repayment. To revise a loan award, please follow the procedure outlined in the award letter notification.
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
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's online database for federal student loan borrowers. NSLDS receives data from schools, loan guarantee agencies, the Direct Loan program and other Department of Education programs. This online resource allows you to be an educated borrower by providing loan types, loan amounts, loan servicers, and disbursement dates. These details are the first steps in determining the repayment plans that is right for you to successfully manage your debt.