Federal Parent PLUS Loan

The federal direct Parent PLUS loan is a credit-based loan that parent(s) of undergraduate dependent students may borrow to help pay their educational expenses. The parent borrower may borrow up to the total cost of attendance minus any other financial aid received.

First time borrowers will be required to complete a Master Promissory Note before loan funds can be disbursed.

Important note: All loans must be originated prior to the end of the semester for which you would like to receive the loan. Refer to the academic calendar for the official end of semester dates.

Loan Eligibility Requirements

The student must be defined as "dependent" as determined by the FAFSA.
The borrower must be the biological, step-parent (if included on the FAFSA) or adoptive parent of the student.
The borrower must meet the same citizenship criteria as the student for financial aid eligibility.
The borrower must not have adverse credit history.
The student must be meeting Satisfactory Academic Progress (SAP).
The student must be enrolled for at least six credits.
The student must be enrolled in a degree or approved certificate program.
The student must have a FAFSA application on record.

Application Process

Parents of dependent undergraduate students can take out a Parent PLUS loan to cover the educational costs as long as the student meets eligibility requirements and the loan fits within the students cost of attendance after other financial aid.

Before you begin...

To qualify for a Direct PLUS Loan, you cannot have an adverse credit history. A credit check is conducted on all Direct PLUS Loan applicants.

Your application will not be processed if you placed a freeze on your credit report. If you have placed a credit freeze, you must lift or remove the freeze at each of the credit bureaus listed below before you continue. Once you have completed the PLUS application and received a approval/denial you can place the credit freeze back on with the credit bureaus.

Credit Union	Contact Number	Website
Equifax	1-888 EQUIFAX 1-888-378-4329	equifax.com
TransUnion	1-800-916-8800	transunion.com

Step 1: Complete the online Federal Direct Parent PLUS Loan Application.

The US Department of Education will perform a credit check to determine your eligibility for the Federal Direct Parent PLUS loan. The credit decision will be displayed immediately after the application is completed.

Please be advised that credit checks are valid for 180 days. The university will open the application in May prior to the start of the fall term for the academic year in question.

When applying for a PLUS loan you will need to indicate the term you are requesting the loan for on the application. Please indicate the following dates, based upon the semester(s) you are requesting the loan:

Summer only: May to August

Fall Only: August to December

Fall/Spring: August to May

Spring Only: January to May

Step 2: Complete the Parent PLUS Loan Master Promissory Note (MPN).

The parent will need to complete the MPN if you do not already have a active MPN on file.

If Approved:

The university will be notified by the Department of Education of the approved loan. Our office will then confirm eligibility of the student to receive the Parent PLUS Loan and award it to the students financial aid package. Students should check their SOLAR Account for updates and any requirements on their "To Do List".

If Denied:

The parent will receive notification from the federal government as to the credit decision.

You can select the option to pursue an appeal with the Department of Education by documenting any extenuating circumstances related to your adverse credit history. Following this selection, you will receive an e-mail confirming your intention. You can then contact the Federal Student Loan Support Center for additional instructions on how to proceed, including how to complete the Credit Counseling Requirement online. Once complete and if your appeal is approved our office will receive notification from the Department of Education to process your loan.

Options For A Denied Parent PLUS Loan:

Parents can contact the Department of Education by documenting any extenuation circumstances related to your adverse credit history.

If approved the parent must complete the PLUS Credit Counseling for parent PLUS Loan borrowers
You can select the option to pursue an endorser who does not have an adverse credit history. An endorser agrees to repay the loan if you do not repay it.

If approved the parent must complete the PLUS Credit Counseling for parent PLUS Loan borrowers

Additional Unsubsidized Student Loan...

You can decide that you no longer wish to pursue a Parent PLUS loan. In this case, the student can apply for additional Unsubsidized Federal Direct loan funds.

Additional Unsubsidized Loan Option

Grade Level	Additional Unsubsidized Loan Amount
Freshman or Sophomore	$4,000
Junior or Senior	$5,000

You can review the following page on our website about the Federal Direct Stafford Loans.

Interest Rates and Origination Fees

Direct Loan Interest Rates

The interest rate for a federal student loan varies depending on:

- the loan type and
- the first disbursement date of the loan (for most types of federal student loans.

The table below provides interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025.

Interest Rates for Direct Loans First Disbursed on or After July 1, 2024, and Before July 1, 2025

Loan Type	Borrower Type	Fixed Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans	Undergraduate	6.53%
Direct Unsubsidized Loans	Graduate or Professional	8.08%
Direct PLUS Loans	Parents and Graduate or Professional Students	9.08%

All Interest rates shown in the chart above are fixed rates. A fixed rate will not change for the lift of the loan.

If your loan was disbursed before July 1, 2024 you likely have a different interest rate.
View interest rates for loans disbursed earlier.

How Is The Interest Rate Determined

Interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type.

Interest begins accruing as the loan is disbursed. Borrowers may choose to repay the interest monthly, quarterly, or have the interest capitalized. Repayment of the principal balance plus interest begins 60 days after the loan has disbursed. However, the borrower can defer payments while that are enrolled at least half time (six credits) by contacting the loan servicer. To locate your servicer log into The National Student Loan Data System.

Direct Loan Origination Fees

Most federal student loans have loan fees. These fees are a percentage of the total loan amount.

A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.

You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

The chart below shows the loan fees for Direct Subsidized Loans and Direct Unsubsidized Loans, first disbursed on or after Oct. 1, 2019.

Loan Fees for Direct PLUS Loans

First Disbursement Date	Loan Fee
On or after 10/1/20 and before 10/1/24	4.228%
On or after 10/1/19 and before 10/1/20	4.236%

Repayment of a Parent PLUS Loan

Repayment begins 60 days after the loan is fully disbursed. For a fall/spring PLUS loan the second disbursement will happen at the start of the spring term for the academic year. The borrower at the time completing the PLUS loan application may decide to either begin repayment at 60 days after the loan is fully disbursed or choose to defer repayment while the student is enrolled at least half-time (six credits) with an additional six months after the student graduates, leaves school, or drops below the half-time enrollment. A parent may choose to change their repayment option by contact your federal loan servicer directly. You can find more information by logging into your studentaid.gov account.

Additional Resources

Federal Student Aid Website for additional information on student loans.

NSLDS CONSUMER LOAN DISCLOSURE INFORMATION

Institutions that enter into an agreement with a potential student or parent of a student regarding a Title IV loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. [HEOA Sec. 489 amended Sec. 485B (d) (4) (20 U.S.C. 1092b)]

NEED MORE ASSISTANCE?

Be sure to visit the rest of our website for more information that may meet your specific questions and needs. If you need further assistance, please feel free to contact us for more information about the financial aid process, status of your awards or to submit documents.