The Direct Parent Loan for Undergraduate Students (PLUS) is designed to assist the parents of dependent undergraduate students enrolled at least half-time in meeting educational expenses. The Federal Direct Parent PLUS Loan is a non-need-based program and the lender is the U.S. Department of Education. However, the parent borrower must pass a credit check. A completed current year Free Application for Federal Student Aid (FAFSA) must be on file for the student before a Parent PLUS loan can be processed. A parent may borrow up to the student’s full cost of attendance for educational expenses including tuition and fees, room and board, books and supplies, transportation and living allowance, less any other financial aid the student receives.
Parent PLUS Loans have a fixed interest rate of 6.28% for loans first disbursed on or after July 1, 2021 but before July 1, 2022. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Repayment begins within 60 days after the final loan disbursement or parent borrowers may choose to defer payments on a Parent PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accruing interest can either be paid monthly or quarterly, or be capitalized quarterly.
The Federal PLUS Loan has a 6.28% origination fee for loans first disbursed on or after October 1, 2021 and before October 1, 2022. This fee reduces the amount that disburses to the student's account, so the parent needs to take that into consideration when determining the amount to borrow.
Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds. After our office receives the denial from the Department of Education, the student will be offered the additional Unsubsidized Loan through their award letter. Freshman and sophomore students are eligible for up to $4,000 additional in the Unsubsidized Loan, and juniors and seniors are eligible for up to $5,000 additional in the Unsubsidized Loan. Parents do have the option to add an endorser to their loan or appeal the credit decision. Please note, parents who are approved through one of these options are not eligible for the additional Unsubsidized Loan amount. For more information on this process, please visit https://studentaid.gov/.
**There are several non-federal loan options available to parent borrowers as well. Interest rates may range anywhere from 3.8% to 12.99% depending on the credit worthiness of the borrower and the lending institution. For more information, please visit our Alternative Loan Information Page.
Parent PLUS Loan Instructions
Parent must complete the Parent PLUS Request Form each time they borrow through the PLUS program. Applications can be completed through our online form or by applying through the Federal website at https://studentaid.gov/.
To complete the MPN:
- Go to https://studentaid.gov/
- Click the “Log In” button on the top right. Enter your FSA ID Username and Password (if you do not have an FSA ID, follow the 'Create Account' link to create one).
- Click “Complete Aid Process” at the top of the page.
- Click on "Complete a Master Promissory Note"
- Click "I'm a Parent for an Undergraduate Student"
- Follow the instructions and read the information carefully to sign your MPN.
If you have any questions, contact the Office of Financial Aid at 502.272.7300.