The Direct Parent PLUS Loan is available to parents of dependent students and is not based on financial need. However, parents must have a sufficient credit rating to qualify. Parents may obtain a PLUS Loan to make up any difference between the student’s cost of attendance and other financial aid.
The Direct Parent PLUS Loan can be borrowed by a parent of a dependent student. The student must have a completed FAFSA on file for the current academic year. The parent must sign a Master Promissory Note (MPN) and have a sufficient credit rating to qualify.
The U.S. Department of Education determines credit score requirements and loan approval. If the loan is denied for credit purposes, borrowers may contact the Direct Loan Servicing Center for credit override instructions or how to include an endorser (co-signer) to the loan. Electronic loan counseling may be required. The Direct Loan Servicing Center can be reached at 800.557.7394.
If the loan is denied for credit purposes, another option is to allow the student to borrow additional Unsubsidized loan funds. Keep in mind, the additional Unsubsidized loan is very limited and may not replace the full amount of the PLUS loan offer.
The U.S. Department of Education charges a 4.248% origination fee on all Direct Parent PLUS Loans with their first disbursement prior to October 1st, 2019. PLUS loans with their first disbursement on or after October 1st, 2019 will have an origination fee of 4.236% at each disbursement.
The Direct Parent PLUS Loan fixed interest rate is 7.6% for loans disbursed between July 1, 2018 and June 30, 2019. For loans disbursed on or after July 1, 2019, the interest rate is 7.079%.
Other Important Details
A Direct Parent PLUS Loan Request Form is required for each PLUS loan accepted. You may accept all or part of any loan offered, but you must indicate on this form the amount you wish to borrow.
2019-2020 Parent PLUS Loan Request Form
There is no grace period for PLUS loans. PLUS repayment begins as soon as the loan is fully disbursed; however, deferment options may be available. Contact your loan servicer for more information.
PLUS loans will always be in the parent’s name. PLUS loans cannot be transferred or consolidated with the student’s loans.