Direct Parent PLUS Loan

Loans are available to assist parents of dependent students with educational expenses that may not be covered by other available aid.

Who may be eligible for this loan?

Parents of Dependent Undergraduate students who are:
  • U.S. citizens or eligible noncitizens
  • Not in default on any federal educational loans
  • Must meet SAP (student)
  • Enrolled Half time

Direct PLUS loans?

A parent may request the loan for a pre-determined dollar amount, or for the student’s maximum eligibility. The maximum eligibility will be the amount of the student’s full cost of attendance minus all other financial aid and scholarships. PLUS loan application will be available for completion beginning June 17, 2013.

Is the FAFSA required?

Yes, the student must submit the FAFSA in order to receive these loans.

Is a credit check required?

Yes, before the loan is approved, the U.S. Department of Education checks the applicant’s credit. Applicants with adverse credit scores may not be approved.

Current Interest Rate

7.9% (Interest accrues during all periods (in-school, forbearance, and repayment) beginning on the first date of disbursement.

Current Origination Fee

4.0% origination fee – This fee is subject to change based on the federal sequestration

Repayment Information

Repayment typically begins 60 days after the last disbursement of the full loan amount. The parent may request that repayment be delayed while the student is enrolled at least half-time. In this case repayment would begin 6 months after the student is no longer enrolled at least half-time. This delay may be requested on the Master Promissory Note for the PLUS loan, or by contacting the Direct Loan Servicing Center (800-848-0979)

How do I apply?

Parents may apply online (website: To complete the application online, parents will need to:
  • log in using their identifying information and federal PIN
  • Be sure to complete the PLUS Master Promissory Note

Additional Information

  • If the Parent PLUS loan is denied based on the credit inquiry, the student may be eligible to receive additional unsubsidized loan funds. If the parent chooses to appeal the denial of the PLUS loan, they may do so by contacting the Direct Loan Servicing Center (800-848-0979).
  • If the Federal Parent PLUS loan is approved, but the parent feels that they would not be able to repay the loan due to extenuating circumstances, they may be able to appeal the credit decision to Student Financial Aid by submitting a Debt to Income Ratio worksheet with all requested documentation. Student Financial Aid will determine whether or not an override of the credit approval is possible, based on the documentation submitted.

Contact Information

For more information on the Federal Parent PLUS loan, please visit the Department of Education website, or contact the Direct Loan Servicing Center at 800-848-0979.