Undergraduate Federal Direct Parent Plus Loans
A qualifying parent may receive a Federal Direct PLUS Loan for the education costs of a dependent undergraduate student who meets the eligible student definition. Additional Parent PLUS Loan information is available at studentaid.gov.
Parent eligibility for a PLUS loan depends on passing a credit check to ensure the applicant does not have an adverse credit history. The dollar amount that can be borrowed is equal to the student's cost of attendance for the academic year minus any other financial assistance received. For example, if the academic year cost of attendance is $19,000 and the student receives $10,000 in other financial assistance, a parent could borrow up to a $9,000 undergraduate PLUS loan.
Federal PLUS loans typically have better terms and more flexible eligibility criteria than private alternative loans. Maximum loan fees and repayment interest rates are set by federal regulations. Federal PLUS loans are subject to a maximum 4.292% origination fee. These fees are deducted from your loan proceeds at the time of disbursement. Also, the maximum repayment interest rate is set at a 7.21% fixed rate.
Before a PLUS loan can be processed the student must complete the Free Application for Federal Student Aid (FAFSA). A FAFSA may be completed online.
Steps for processing Parent PLUS Loans.
Step 1: Receive Your Aid Offer
A student is awarded a Federal Direct PLUS Loan and accepts the award on mavlink.
Step 2: Complete the Federal Direct PLUS Loan Request Process
The parent who completes the Direct PLUS Loan Request must have a Federal PIN number. If that parent does not have a Federal PIN, he/she may apply for one by going to the Department of Education PIN Registration site. The PIN serves as an identifier to allow you to access personal information in various U.S. Department of Education systems. The PIN also serves as an electronic signature.
Once the Direct PLUS Loan Request is completed, the parent will know immediately if approved or denied. Within 24-48 hours, the parent/student information and the credit decision is sent to the school.
Please note: To borrow a PLUS loan for a student, the parent must be the student's biological or adoptive mother or father. A stepparent is also eligible to borrow a PLUS loan if his/her income and assets were taken into account when calculating the Expected Family Contribution (EFC). A legal guardian is not considered a parent for federal aid purposes.
Step 3: Complete Your Loan Documents
The same parent who completed the Direct PLUS Loan Request must complete and sign a Master Promissory Note (MPN) for Parent PLUS Loans. The electronic version of the MPN allows a parent to complete, sign and obtain a copy of his/her MPN over the web using his/her U.S. Department of Education issued PIN.
If the same parent previously signed an MPN for a Federal Direct PLUS Loan for this son/daughter, a new MPN for the upcoming academic year is not required; the MPN signed previously is still valid and in effect.
If a parent has not previously signed an MPN for Parent PLUS Loans for this son/daughter, he/she should access the Department of Education's Student Loans website and sign a Master Promissory Note for Parent PLUS Loans. Our office will be notified once a parent has completed this process. This notification must be received before we can disburse the Federal Direct PLUS Loan to a student's consolidated billing account.
Note: As stated on the Federal Application, the Direct Parent PLUS Loan will be applied to your student's account to pay for tuition and fees as well as room and board (if applicable).
To avoid delays in processing your Federal Direct PLUS Loan, please follow these helpful hints:
- The same parent borrower who completed the Direct PLUS Loan Request must sign the MPN.
- The parent should complete the Direct PLUS Loan Request using their full legal name. Likewise, when completing the electronic MPN the parent should use their full legal name. The MPN will not 'link' to the PLUS Loan unless these items match.
- If one parent borrowed through the PLUS Loan program in a previous year and completed an MPN, and for the upcoming academic year a different parent has completed the Direct PLUS Loan Request, a new MPN is required from that parent.
- Make sure the parent borrower's AND student's Social Security Number (SSN) and Date of Birth are correct when completing the Direct PLUS Loan Request and electronic MPN.
- Eligible non-citizens must provide documentation. Acceptable documentation is the Alien Registration Card (I-551 or I-151) or the Arrival-Departure Record (I-94). Provide a copy of the front and back of the card.