Parent Eligibility to Borrow the Parent PLUS Loan

• Be the biological or adoptive parent of the student
  • A stepparent is also eligible to borrow a PLUS Loan on the student's behalf, as long as the parent is currently married to the legal or biological parent of the student.
  • A legal guardian, grandparent, or other family member is not considered a parent for any federal student financial aid purposes and may not request a PLUS loan.
• Pass a credit check administered by the US Department of Education
  • This check only considers a borrower's recent credit history
  • Credit checks are valid for 180 days.
• Be in good standing on all federal loans (Perkins, FFELP, Direct, etc) already in the parent's name
• Be a US Citizens or Eligible Non-Citizen

Student Eligibility to Benefit from the Parent PLUS Loan

• Students must have a current, completed FAFSA on file
• Meet all federal eligibility requirements
• Be enrolled at least half-time (6+ credits)

• Determine how much is needed in the loan.
  • Parent-borrowers can choose a specific amount or opt to have the maximum possible amount processed.
  • The maximum amount is determined by the following calculation:
    Students's Cost of Attendance (minus) all other aid = maximum amount of loan that can be processed
  • When calculating an amount less than the maximum possible award, consider the following:
    • Use the tuition calculator to calculate tuition, housing, meals and to subtract aid offered
    • Calculate the loan origination fee that will be assessed equally on the disbursements
• Submit the application via studentloans.gov
  • The parent must log in with their FSA ID and password. Do not use the student's FSA ID.
  • Submit the application for the correct academic year. 
    • Parents of new Fall students can begin applying on June 1st
    • Returning parent-borrowers can begin applying on July 1st
  • The Fall account statement is issued on the third Monday in July. Parents can choose to wait until they receive the statement to submit an application

2023-2024

• Interest Rate is 8.05% for Direct PLUS loans first disbursed on or after July 1, 2023 and before July 1, 2024.

2024-2025

• Interest Rate is 9.08% for Direct PLUS loans first disbursed on or after July 1, 2024 and before July 1, 2025.

These are fixed interest rates for the life of the loan.

Understanding Net vs. Gross Federal Direct Loan Amounts

There is a 4.228% loan origination fee (for loans first disbursed on or after October 1, 2024 and before October 1, 2025) on all Direct PLUS Loans. The loan fee will be proportionately deducted from each loan disbursement. The Gross Amount of the loan is what you request and are responsible for repaying. The Net Amount of the loan is what pays to the student's account. The Net Amount is the Gross Amount of the loan minus the origination fee.

Example: Calculating Net PLUS Loan Amount for balance of $10,000.

Gross Loan (amount requested)             $10,000
Loan Origination Fee (4.228%)               -$423 (4.228% x $10,000)
Net Amount (amount disbursed)             = $9,577

The 2024-2025 origination fee is not yet available from the Department of Education.

Credit decisions are emailed to the parent who completed the application within 24 hours of submission.

If the loan is credit-approved

• Complete the PLUS Master Promissory Note (MPN) on the studentaid.gov website. Choose "Complete Master Promissory Note (MPN)" then select "Parent PLUS." Follow the four-step process to accept your loan. 
• If approved, the U.S. Department of Education will electronically transmit your information to our system. We will process it within a few days and issue revised Financial Aid Offer and disburse the funds, provided the MPN is completed and received

If the loan is credit-declined

• Parent-borrowers with adverse credit history may still borrow the parent PLUS Loan by obtaining an endorser who does not have an adverse credit history, or by appealing the denial to the U.S. Department of Education.
  • The endorser cannot be the student on whose behalf the loan is requested.
  • Endorsed loans cannot be increased without a new application and endorser addendum.
• PLUS online Counseling is required for all borrowers who are issued an initial denial
  • PLUS online Counseling is intended to help Direct PLUS Applicants:
    • Understand the cost and obligations that come with borrowing a PLUS Loan.
    • Make careful decisions about taking on federal loan debt.  
• If a parent-borrower is unable to secure a PLUS loan, the student may be eligible for additional unsubsidized loans to help pay for their education.
  • The parent-borrower must first send an email to [click-for-email] from the same email account used on their denied Federal Parent PLUS application to confirm they do not wish to appeal the credit decision or seek an endorser.
  • Then the dependent student must complete and submit the Undergraduate Federal Loan Change Request Form to SFS
• For more information, visit studentaid.gov or by calling Direct Loan Applicant Services at 800-557-7394 for more information regarding the denial, appeal, or endorser process.

Repayment Options

During the Parent PLUS Loan application, the parent-borrower can choose to either begin repayment while the student is in school or to defer until the student either graduates or drops below half-time enrollment. If the parent-borrower selects the option to repay the loan while the student is enrolled, then the first payment is due 60 days after the first disbursement is made. For example: If the first disbursement is made in August, then the first payment is due in October.

The federal loan servicer assigned to the loan will provide information about repayment and confirm the date repayment begins. Repayments are made to the federal loan servicer. Repayment terms range from 10 to 25 years to repay the Parent PLUS Loan. Please refer to the federal StudentAid website for more information on loan repayment.

Deferment

Deferment lets parent-borrowers delay loan repayment until after their student is no longer enrolled at least half-time (less than 6 credits). Students who attend less than half-time will trigger repayment, even if the student has not graduated yet. Parents must request separate deferments for each loan period through their federal loan servicer.

Upon disbursement, parent-borrowers will receive repayment and deferment information from their loan servicer and may need to provide a copy of the student’s academic verification along with the in-school deferment form. For enrollment verification information visit the Office of the University Registrar's website.

If the loan is deferred, interest will accrue on the loan during the deferment. Parent-borrowers may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. The loan servicer will notify parent-borrowers when the first payment is due. 

Forbearance

Parent-borrowers who are unable to make their scheduled loan payments should contact their loan servicer immediately. The servicer can help parent-borrowers understand their options for keeping the loan(s) in good standing. For example, the parent-borrower may wish to change the repayment plan or request a deferment or forbearance that allows them to temporarily stop or lower the payments on the loan(s).

In certain situations, parent-borrowers can have their federal student loan forgiven, canceled, or discharged.