Parent PLUS Loans
This is a loan that allows parents of dependent students to borrow to help pay for educational expenses. Financial need is not considered; therefore, the program is open to almost any family (student and parent) who does not have an adverse credit history. The family can borrow up to the cost of education, less other aid received. To find current interest rate, please click here for current student loan interest rates.. Repayment begins 60 days after disbursement. Please contact the Financial Aid Office for more information.
For more information on student loans please review the additional links on the left for Loans and Debt Management, other loan information and StudentLoans.gov.
Parent PLUS Loan Information
How does a parent get a loan?
For a Direct PLUS Loan, the parent must complete a Direct PLUS Loan Application and Master Promissory Note (MPN). The MPN is a legal document in which the borrower (the parent) promises to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan. The parent will need to complete the MPN online at www.studentloans.gov. Financial need is not considered; therefore, the program is open to almost any family, student and parent(s), who does not have an adverse credit history.
How much can a parent borrow?
The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives. For example, if the cost of attendance is $6,000 and the student receives $4,000 in other financial aid, the student's parent can request up to $2,000.
How does the parent get the loan money?
The Department of Education will send the loan funds to the student's school. In most cases, the loan will be disbursed in at least two installments, and no installment will be more than half the loan amount. The school will use the loan money first to pay the student's tuition, fees, and other school charges. If any loan funds remain, the parent will receive the balance. Any remaining loan funds must be used for the student's education expenses.
What's the interest rate?
The interest rate will be determined each June for new loans made for the upcoming award year. Each loan will have a fixed interest rate for the life of the loan. To find out the current interest rate, please go to current student loan interest rates.
Prior Federal Loans and Financial Aid History—Students and parents may check the interest rate, servicer information, and other financial aid history at www.nslds.ed.gov.
Other than interest, is there a charge to get a PLUS Loan?
There are loan fees charged by the Department of Education for each Direct PLUS Loan and are deducted proportionally from each loan disbursement.
When does the parent begin repaying the loan?
The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. The parent may defer repayment: while the student on whose behalf the parent borrowed the loan is enrolled on at least a half-time basis, and for an additional six months after the student ceases to be enrolled at least half-time.
How does the parent pay back the loan?
The parent will repay the servicer listed on the disclosure statement provided when he or she received the loan. The loan servicer will provide regular updates on the status of the PLUS Loan, and any additional PLUS Loans that a parent receives.
Repayment Plans—The Direct PLUS Loan Program for parents offers three repayment plans-standard, extended, and graduated-that are designed to meet the different needs of individual borrowers. The terms differ between the repayment programs, but generally borrowers will have 10 to 25 years to repay a loan.
What if a parent has trouble repaying the loan?
Under certain circumstances, a borrower can receive a deferment or forbearance to temporarily stop or lower the payments on a loan.
Can the parent's PLUS Loan be transferred to the student so that it becomes the student's responsibility to repay?
No. A PLUS Loan made to the parent cannot be transferred to the student. The parent is responsible for repaying the PLUS Loan.
Can a PLUS Loan be cancelled (discharged)?
Yes, under certain conditions. A cancellation (discharge) releases the parent from all obligations to repay the loan.