Federal Direct Parent PLUS Loan
A Federal Direct Parent PLUS Loan is a non-need-based source of loan funds to assist parents of dependent students.
You can choose to apply for a Federal Direct PLUS loan by submitting a loan request form online at http://studentloans.gov/myDirectLoan/index.action.
Parents must have a good credit history and pass a credit check performed by the U.S Department of Education to be eligible for this loan.
The interest rate for PLUS loans first disbursed between July 1, 2013, and June 30, 2014 is fixed at 6.41%. The interest rate for PLUS loans first disbursed between July 1, 2014, and June 30, 2015 is fixed at 7.21%.
A loan fee of 4.288% (4.292% for loans with a first disbursement on or after October 1, 2014) of the loan will be deducted proportionately each time a loan disbursement is made.
Your parents may borrow an amount up to the maximum cost of attendance, less all other financial assistance.
Divorced and Separated Parent Borrowers
Federal regulations allow both of your parents to apply for separate PLUS loans. When both parents apply for PLUS loans, the excess funds must be disbursed to the student.
Electronic Master Promissory Note (MPN)
Federal regulations require that first-time borrowers complete a Master Promissory Note before receiving any money from the Federal Direct Loan Program.
Method of Payment
Loan proceeds will be credited directly to your student account. Tuition, fees, room and board, and any other authorized charges will be paid.
If the amount of your loan is greater than the amount of these charges or if these charges have already been paid, parents will have the option of allowing the remaining money to be refunded to the student or parent.
Repayment of the loan begins within 60 days of the final disbursement.
Federal provisions permit the borrower to combine all Title IV loans into one repayment program. Federal Perkins Loan, Federal Direct Stafford Loans (subsidized/unsubsidized), and Federal Family Educational Loans (subsidized/unsubsidized), may be consolidated.
Federal Direct Parent Loan for Undergraduate Students may be consolidated as a separate loan, but not with the student loans. The maximum repayment period is 30 years and loan holders are required to offer both flexible and graduated repayment plans.
Minimum monthly payments are
- $40 for Perkins Loans
- $40 for Stafford Loans
- $50 for PLUS Loans
The holder of your loan will tell you what your specific loan repayment schedule will be.
For more information on consolidating student loans, visit our loan consolidation area.