Parent PLUS Loan Programs

What is a Parent PLUS Loan?

Parents of dependent undergraduate students may apply for the federal Direct Parent PLUS Loan on behalf of the student. This loan is restricted to the biological, adoptive, and stepparents. Legal guardians do not qualify as parents for federal aid purposes. Students with legal guardians and no living parents qualify as independent students and may receive increased Stafford Loans.

The Parent PLUS Loan may be processed for up to the cost of attendance less any financial aid the student is receiving. The application process consists of the U.S. Department of Education checking your credit history. If you are found to have an adverse credit history, you may still borrow a Parent PLUS Loan if obtain a creditworthy endorser (co-borrower). Alternatively, you can appeal the credit decision with the U.S. Department of Education. Students whose parents are denied the Parent PLUS loan may be eligible for additional federal student loan eligibility.

Borrowing Limits

Direct Parent PLUS loans can be processed for up to your student’s remaining cost of attendance. Refer to your student’s Financial Aid Disclosure in SHU Awards. The PLUS loan may only be used to pay for education-related expenses. Your student can authorize you access to their Student Account online to determine semester billed tuition and fee costs.

Interest Rates & Fees

2025-2026 Academic Year

  • The Federal Direct PLUS Loan Program requires a 4.228% origination fee. The U.S. Department of Education deducts the fees before you receive any loan money, so the loan amount you actually receive will be 4.228% of the certified amount.
  • The interest rate for Direct PLUS Loans is a fixed rate of 8.94%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center at 800-557-7394.

2024-2025 Academic Year

  • The Federal Direct PLUS Loan Program requires a 4.228% origination fee. The U.S. Department of Education deducts the fees before you receive any loan money, so the loan amount you actually receive will be 4.228% of the certified amount.
  • The interest rate for Direct PLUS Loans is a fixed rate of 9.08%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center at 800-557-7394.

Applying for a Federal Direct Parent PLUS Loan

Before you begin: Parents who wish to apply will be required to use their own FSA ID. If you do not already have an FSA ID, you can create one. To apply for a PLUS loan, the students must complete a Free Application for Federal Student Aid (FAFSA) (School Code 001403).

Attention Mac users, you must use Firefox as your browser in order to complete your Master Promissory Note. Safari is not compatible with the Department of Education's website.

  1. Complete the PLUS Loan Application
    Click on the above link, sign in with your FSA ID.
  2. Electronically sign the Direct (Parent) PLUS Loan Master Promissory Note (MPN)
    This part of the process is collecting your electronic signature on the Promissory Note where you agree to the terms and conditions of the loan.
  3. Download the Parent PLUS Loan Certification Form
    Submit it to Student Financial Assistance to finalize the loan process.
    2025-2026 Parent PLUS Loan Certification Form
    2024-2025 Parent PLUS Loan Certification Form
  4. Complete the Annual Parent Loan Acknowledgment (Optional)
    The Annual Parent Loan Acknowledgment is an optional online session that allows parents to see how much they have borrowed in Federal loans, preview what their monthly payments might be, and explain concepts such as capitalization and the difference between federal and private loans. This optional task cannot be completed until after April 15 for the upcoming academic year which begins each fall.

What will you gain from the Annual Parent Loan Acknowledgment?

  • Knowing how much you owe in Federal student debt will allow you to make informed choices before agreeing to borrow more money to pay for higher education.
  • Calculating the monthly payments.
  • Breaking down basic loan concepts such as interest accrual, capitalization, and the difference between private and federal loans will help you better understand the balance for repayment.

Disbursement

Loans are typically divided into equal installments for each semester. The student must initiate attendance, be enrolled at least half-time and be maintaining satisfactory academic progress to be eligible. All requests related to aid eligibility must be received. After the add/drop period, the PLUS loan will post to your student’s account. Once posted, you will receive a disbursement notification from Student Accounts.

Refunds

If your Direct PLUS loan exceeds your student’s billed charges for the term, a financial aid refund will be issued within 14 days of aid disbursement. For more information, refer to the Student Accounts Credit Balance Processing webpage. You may elect to have the credit held for future academic year charges.

Modify, Cancel or Return (a portion of your loan)

To increase a loan amount, you may submit an additional Parent PLUS Loan Certification form. If your credit approval has expired, you will need to obtain a new credit approval. You may request a modification or cancellation to a future term by emailing SFA@sacredheart.edu. For returns back to the lender, send your written request to either SFA or to Student Accounts within 120 days of your PLUS loans disbursement date.

Enrollment

Changes in your student’s enrollment status may impact financial aid. If your student drops below 6 credits, they will be ineligible for federal loan disbursement. Students are encouraged to review our Financial Assistance Withdrawal Policy and to go over the changes with their Financial Aid Counselor. Failed attendance and course withdrawals affect your student’s satisfactory academic progress, which may also impact aid eligibility.

Repayment

If not deferred, your repayment date will begin 60 days after the loan is fully disbursed. If you elected to defer payments, the repayment date will be after a 180-day grace period following your student’s graduation, withdrawal from courses or when your student drops below 6 credits. During this grace period, you are not required to make payments though interest will continue to accrue.

If you decide to defer payments while your child is enrolled at least half-time (6 or more credits), payments will not be required, but interest will accrue during this time. It is advised that you at least pay the interest.  Accrued interest will be capitalized (added to your loan’s principal balance). If you do not request a deferment, payments are due after the PLUS loan is fully disbursed. There are no prepayment penalties.

After your loans disburse, you will be assigned a federal loan servicer who will manage the repayment of your Parent PLUS loans. You will be automatically assigned to the 10-year standard repayment plan. However, there are several repayment plans available to Direct Loan borrowers. Contact your loan servicer for information on the different repayment strategies.

How much have I borrowed?

Visit the National Student Loan Data System and log in with your FSA ID. This website will display your loan history (not your students loan history) for all federal loans. Private loans are not included.