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 you get an endorser who does not have an adverse credit history and agrees to repay the loan if you do not. The endorser may not be the student on whose behalf a parent obtains a Direct Parent PLUS Loan.
The Federal Direct PLUS Loan Program requires a 4.272% origination and default 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 95.728% of the certified amount.
The interest rate for Direct PLUS Loans is a fixed rate of 6.31%. 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 may create one here.
Three-step application process:
If you are a first time borrower, you must complete all three steps which will take approximately 25-30 minutes.
Repeat borrowers who have already completed a Federal Direct Master Promissory Note (MPN) for previous years need to complete step 1 and 3.
No PLUS Loan will be processed until a valid credit approval has been received by the U.S. Department of Education.
Attention MAC users, you must use Internet Explorer or Firefox as your browser in order to complete your Master Promissory Note. Safari is not compatible with the Department of Education's website.
STEP 1: Complete the PLUS Loan Application
Click on the above link, sign in with your FSA ID and then click "Apply for a PLUS Loan" under the Parent Borrowers section.
STEP 2: Electronically Sign the Direct PLUS Loan Master Promissory Note (MPN)
This is a separate step from the above mentioned "PLUS Loan Application". 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.
STEP 3: Complete your 2016-2017 Parent PLUS Loan Certification to authorize the dollar amount you wish to borrow. After the borrower has completed this form, please return it to our office so that the loan may be processed.