A Federal Direct Parent Loan for Undergraduate Students (PLUS) may be an option for families who need to borrow more than the Federal Direct Loan limits.
As of October 1, 2020, this loan has a fixed interest rate of 5.3% with a 4.228% fee which will be deducted from the proceeds that are sent to the school.
Eligibility is limited to the cost of attendance minus any other financial aid the student is receiving. Because the funding for Federal Direct PLUS loans comes straight from the US Department of Education, students and parents do not have to find a lender to borrow through this program.
Denial of an application for the Federal Direct PLUS loan may make the student eligible to borrow an additional amount ($4,000 or $5,000) of Federal Direct Unsubsidized Loan. Reduction or cancellation of the Federal Direct PLUS before or after disbursement can be requested by the parent borrower. Please contact the financial aid office.
To apply for a Federal Direct PLUS Loan you must be the parent of a dependent student. The parent borrower must have an FSA ID. With your FSA ID log in to studentaid.gov and select Request a Direct PLUS Loan and then Parent PLUS loan type. When you complete the application this will include a credit check that is good for 180 days. You will need to specify the loan amount and if you choose maximum amount, your loan will be processed for your maximum eligibility. Once you have completed the application you will receive notice from the Department of Education if you’re approved or denied.
If approved, first-time parent borrowers will need to continue the process by selecting Complete Master Promissory Note for Parent PLUS.
If denied, the parent will be presented with serveral options. (e.g., obtain an endorser, appeal the decision, request additional Unsubsidized Loan for student instead of the PLUS Loan.)