The Federal Direct Parent Loan for Undergraduate Students () is a credit-based loan available to parents of dependent undergraduate students. Students will not have this loan included in their financial aid offer. Parents must apply separately for this loan via听听and may borrow up to the student's total cost of attendance, minus all other financial aid.
Video Playlist: Parent PLUS Loan Overview
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Eligibility:听
The Parent PLUS loan is available to credit-worthy parents of dependent undergraduate students who have submitted a FAFSA, regardless of financial need. To be approved, the parent must not have an adverse credit history.
Conditions that result in an adverse credit history include:
- One or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent or that have been placed in collection or charged-off (written off) during the two years preceding the date of the credit report.
- Having been subject to any of the following conditions during the five years preceding the date of the credit report:
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- Default determination
- Discharge of debts in bankruptcy
- Foreclosure
- Repossession
- Tax lien
- Wage garnishment
- Write-off of a federal student aid debt
Students are considered to be independent if they are: at least 24 years old; married; have children; a graduate student; a veteran; a member of the armed forces; an orphan, ward of the court, or homeless. If none of those apply, they are considered to be dependent for federal student aid purposes.
Options if Denied:听
If you are denied a Parent PLUS loan because of adverse credit, you may...
- Reapply with a credit-worthy cosigner.
- Appeal the denial with the Department of Education if there are extenuating circumstances related to your credit history that you can document.
- Contact us--your student may be eligible for an additional Federal Direct Unsubsidized loan.
Maximum Loan Amount:听
Up to your total听cost of attendance, minus all other financial aid.
Interest Rate:听
Parent PLUS loans offer interest rates that remain fixed for the life of the loan.
- For loans borrowed during the 2024-25 academic year:听9.08%
Interest accrues while the student is in school, during any grace period, and during repayment. You can pay the interest as it accrues if you wish. If not paid, interest will be capitalized when repayment begins.
Origination Fee:听
A loan origination fee is deducted at the disbursement of each installment of the loan.听For loans with a first disbursement on or after Oct. 1, 2020, and before Oct. 1, 2025, the fee is听4.228%.
How to Apply:听
You must sign in to听听using your own FSA ID, request a PLUS loan, and complete a Master Promissory Note (MPN).
A credit check will be conducted once you begin the loan application process. If you were initially denied the Parent PLUS loan but have since qualified by obtaining an endorser or documenting extenuating circumstances, you will also be required to complete PLUS Counseling. This can be completed through听听as well.
Once you're approved, the Department of Education will send us confirmation of your loan approval and the details of the requested amount. The loan will be added to your student's financial aid award after processing.
Repayment begins 60 days after the last disbursement of the loan. However, repayment can be deferred while the student is enrolled at least half-time and for an additional six-month grace period after the student graduates. Payments are made to your Direct Loan servicer each month. The minimum payment is $50, but that amount will likely be higher depending on the total amount borrowed.
The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan.
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