Parent PLUS Loan
If you are the parent of a dependent student, you will have the opportunity to help with your student's cost of college by taking out a Direct Parent PLUS loan. To qualify, parents must be U.S. citizens or eligible non-citizens and have a valid social security number. This is a credit based loan. The amount requested is limited by a student's Cost of Attendance and other financial aid. PLUS loans disbursed after July 1, 2015 and before July 1, 2016 will have an interest rate of 6.84%.
Important facts to remember:
- Only one parent should request the loan.
- Requesting a PLUS loan does not obligate the parent to take out the loan. A credit check will be run to determine if you are eligible for a Parent PLUS loan once the Parent PLUS loan application form is completed.
- If the parent is denied the PLUS, the student becomes eligible to apply for an additional unsubsidized Stafford loan. Therefore, it may be beneficial to request the loan even if you believe you may be denied.
- If you are denied for a PLUS loan, you may choose to pursue an endorser or appeal the decision, rather than the student being awarded additional unsubsidized Stafford loan funds.
- PLUS Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have:
- Obtained an endorser or
- Documented extenuating circumstances to the satisfaction of the U.S. Department of Education.
PLUS Counseling may be completed at http://studentloans.gov. This counseling must be completed before any PLUS loan disbursements can occur.
Request the annual amount desired.(Keep in mind there is an origination fee. See below for current percentage.) If your student will be enrolled for multiple terms within the financial aid year, the amount you request here will be evenly divided among each term.
Parents can complete the Parent PLUS loan request process on the Department of Education website, http://studentloans.gov. Parents will need to login using a FSA ID. Please click on the link for instructions on how to request a FSA ID.
- Complete the Parent PLUS loan application form.
- If approved, complete a Master Promissory Note if you are a first time Parent PLUS loan borrower with the Department of Education.
A credit check will be run to determine if you are eligible for a Parent PLUS loan once the Parent PLUS loan application form is completed.
All Parent PLUS loans are subject to an origination fee. This fee is taken from the gross loan amount prior to disbursement. This fee is as follows:
- Direct PLUS loans first disbursed on or after December 1, 2013 and before October 1, 2014: 4.288%
- Direct PLUS loans first disbursed on or after October 1, 2014 and before October 1, 2015: 4.292%
NOTE: PLUS loans are long-term, with a fixed interest rate set by the federal government and repayment that generally begins within 60 days of the final disbursement of the loan for the academic year.