Federal Direct PLUS Loan for Parents
- Available to credit worthy parents of dependent students
- Eligibility is limited to educational costs minus financial aid
- Repayment begins within 60 days of full disbursement
- Deferments are available upon request to U.S. Department of Education
- The interest rate for Parent PLUS loans disbursed after July 1, 2015 and before July 1, 2016 is fixed at 6.84%
- Loans fees for Parent PLUS loans disbursed after Oct. 1, 2015 and before Oct. 1, 2016 are 4.272% and are proportionately deducted from each loan disbursement.
How to Apply for the Parent Federal Direct PLUS Loan
First-time borrowers: Complete steps 1 and 2
Repeat borrowers: Complete step 1 only.
Note: If more than one parent, including the step-parent, is borrowing then each parent or step-parent must complete the required steps for their own loan request.
- Request a Direct PLUS Loan
- The parent indicates the amount he/she wants to borrow (for the current school year) based on the student’s eligibility as indicated in the financial aid award letter.
- Direct PLUS Loan requests collect parent information that will be used by the school to process the application.
- PLUS loan borrowers will be subject to a credit check by the U.S. Department of Education.
- Sign a Master Promissory Note
- Parent borrowers must complete an MPN for each student using their own (parent) Federal Student Aid ID or FSA ID. Apply for an FSA ID at fsaid.ed.gov.
- The Direct PLUS Loan MPN constitutes the parent’s legally binding agreement to repay all Direct PLUS Loans that the student receives.
- The Direct PLUS Loan MPN explains all of the terms and conditions of Direct PLUS Loans.
- Create a Federal Student Aid ID
- Deferment while in school
- The Federal Direct PLUS Loan enters repayment once the loan is fully disbursed (paid out) to the school. For example, if the loan covers both fall and spring semesters, once the spring portion disburses in January, repayment begins in February.
- Parents must contact the Loan Servicer to request a deferment. Once Parent PLUS borrowers are notified of the first payment due, they may respond by requesting an in-school deferment
- while you or your child are enrolled as a student at least half-time and
- for an additional six months after your child ceases to be enrolled at least half-time.
- Requests for PLUS loan deferments must be made annually as long as the child remains a full-time student.