Direct PLUS Loan

Parents of dependent students may apply for a Direct PLUS Loan to help pay for their student’s education as long as certain eligibility requirements are met. Parents may borrow up to the cost of attendance minus other financial aid received.

Please see below for eligibility requirements and steps to apply for a Parent PLUS Loan.

  • The student for whom the parent is borrowing the PLUS Loan must have filed a FAFSA.

  • The parent borrower must be the student’s biological, adoptive, or a step-parent who is listed on the student's FAFSA (step-parents not listed on the FAFSA do not qualify).

  • The student must be a dependent student who is enrolled at least half-time.

  • The parent borrower must not have an adverse credit history. If the parent does not pass the credit check, the parent may still be able to borrow the loan if someone agrees to endorse the loan. The endorser promises to repay the loan if the parent borrower fails to do so.

  • The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loan, or owe an overpayment on a federal educational grant, and must meet other general eligibility.

Applying for a Direct Parent PLUS Loan 

The parent must log in to the Federal Student Aid website using the parent FSA ID to apply for the PLUS Loan. It's important that the parent log in with their own FSA ID and not the student's FSA ID.

  • Step 1: The parent must complete the Direct PLUS Loan application using the parent FSA ID. The PLUS Loan application must be completed each time a parent borrows a PLUS Loan. If a parent has more than one child in college, they must complete the application for each child for whom they want to borrow a PLUS Loan.
  • Step 2: The parent must also complete a Direct PLUS Loan Master Promissory Note (MPN) using the parent FSA ID. The MPN is a legal document in which the parent borrower promises to repay the loan and any accrued interest and fees to the U.S. Department of Education. The MPN can be used for more than one loan over a period of up to 10 years. 
  • Loan Deferment: Parents have the option of deferring repayment on Parent PLUS Loans while the student on whose behalf they borrowed the PLUS loan is in school and for a six-month grace period after the student graduates or drops below half-time enrollment. Parents must select this option when completing the PLUS Loan Application.

Can I still receive a parent PLUS loan if I have an adverse credit history?

A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a PLUS loan through one of these two options:

  1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the parent PLUS loan if you do not repay it. The endorser cannot be the child on whose behalf you are borrowing.
  2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history.

With either option 1 or option 2, the parent also must complete credit counseling for parent PLUS loan borrowers.

If the parent does not wish to obtain an endorser or appeal the credit decision, we may be able to offer the student an additional direct unsubsidized loan. 

‌Interest Rate

Interest is charged from the date of the first disbursement until the loan is paid in full. Interest rates are determined on an annual basis; however, rates for the specific academic year borrowed will be fixed for the life of the loan. 

An origination fee is deducted proportionately each time a disbursement is made. Parents may find parent private education loans to be competitive with the Parent PLUS option.

  • 9.083% Fixed Interest Rate for PLUS Loans disbursed between July 1, 2024 - June 30, 2025
  • 8.05% Fixed Interest Rate for PLUS Loans disbursed between July 1, 2023 - June 30, 2024
  • 4.228% Origination Fee