Federal Parent PLUS Loans
The U.S. Department of Education provides federally funded loans to parents that want to help support their dependent student's education. To be eligible the student must complete the Free Application for Federal Student Aid (FAFSA), be enrolled at least half-time (6 credit) in a degree seeking program and meeting Satisfactory Academic Progress (SAP). All parent borrowers are required to complete a Master Promissory Note (MPN) for each specific student.
Borrower Eligibility
- Parent borrower must be the biological or adoptive parent of the student. Step-parents can be eligible, but only if they are listed on the FAFSA
- Parent borrower must be U.S citizen or eligible non-citizen
- Parent borrower cannot be default on any federal loans
1) Request the max for the full academic year. We can always decrease the loan at your request.
2) Peace of mind knowing the full year is completely funded.
3) Interest doesn't begin to accrue on loan until disbursement. So only the half of the loan that disburses will accrue interest immediately.
4) Have just one credit review for the year.
5) The loan will be reflected on the bill received from University Bursar.
6) Don't wait until the busy holiday season to apply for a Spring loan. You will likely forget.
7) Campus closes Christmas Eve through New Years Day. Time will be limited for new loan processing.
1) Full year loans are automatically split 50/50 between Fall and Spring. If you need $15,000 for Fall, go ahead and apply for $30,000 to cover the year and we'll split it evenly and schedule disbursements accordingly. Don't worry, the Spring disbursement won't start accruing interest until it disburses.
2) If circumstances change and you no longer need the loan or you need the amount reduced, just let us know by the first of August (for Fall loans) or January (for Spring loans) and we can cancel or reduce the pending PLUS disbursement, no problem.
3) The students total aid package, including Parent loans, cannot exceed the Cost of Attendance (COA) budget for the period of the loan.
4) Loan approvals need to be received no later than two weeks before the Due Date to allow time for our office to certify the loan.
5) Campus closes Christmas Eve through New Years Day. Any loan application received during that time will not be processed until we return to the office in January and there should be no expectation that the loan will be processed before Due Date.
6) We do not expedite processing. Certifications will be processed in the order received. Do not delay!
7) All federal loans are subject to an origination fee, utilize the PLUS calculator to ensure the disbursement is what you need.
Refund Options
Parent borrowers have the option on the PLUS application to have the refund go back to them or to the student. All parent refunds require a hardcopy check be issued and mailed to the address on the PLUS application. Direct Deposit is not an option for parent refunds, like it is for students. Parent refunds should be allowed 2 weeks to receive.
PLUS Application Denials
If a Parent PLUS application is denied, borrowers have the option of obtaining an endorser or filing an appeal with FSA. When an application is denied, the student's unsubsidized loan eligibility is increased. If an appeal is approved and/or endorser added to the PLUS application, the borrower needs to self-identify to have the newly approved loan processed and the parent borrower must complete PLUS Credit Counseling.
- Freshman/Sophomore: Additional $4,000/year
- Junior/Senior: Additional $5,000/year
PLUS Loan Interest Rates and Fees
All federal PLUS loans are subject to an origination fee and fixed interest rates. To view the current rates, click the button below:
Fixed Interest Rate:
Interest is additional money that you pay as a cost of borrowing. Fixed means that the interest rate never changes. The interest is calculated as a percentage of the unpaid amount that you borrowed.
Origination Fee:
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal PLUS loans assess an origination fee of approximately $40/per 1,000; therefore, the amount you receive as a disbursement will be less than the amount you request. Example: $1,000 loan = $960 disbursement, but you are responsible for paying back the full $1,000 plus any interest that accrues.
Utilize the Direct PLUS Loan Calculator to help you calculate how much you need to borrow:
Description of Federal Parent PLUS Loans
Unsubsidized Loans:
All federal PLUS loans are unsubsidized, which means interest begins to accrue immediately upon disbursement. Watch this short video, "What Is Interest Capitalization", to learn about the impact of interest on your repayment: