Federal Direct PLUS Loan (Parent)
The Federal Direct PLUS Loan provides a borrowing option for parents of dependent undergraduate students. Based upon a parent's credit history, a parent may borrow through this federally guaranteed, non-need-based loan program. We encourage students to exhaust their Federal Direct Student Loan eligibility prior to families borrowing from the Federal PLUS Loan program due to the student loan's more favorable terms; but, ultimately, it is each family's choice. Additional terms, subject to revision by federal regulation, include:
- 7.08% fixed interest rate during repayment for loans disbursed from July 1, 2019 through June 30, 2020
- 5.03% fixed interest rate during repayment for loans first disbursed from July 1, 2020 through June 30, 2021
- 4.236% origination fee for PLUS loans with a first disbursement date from October 1, 2019 through June 30, 2020
- 4.228% origination fee for PLUS loans with a first disbursement date from October 1, 2020 through June 30, 2021
- Repayment of both principal and interest usually begin within 60 days of disbursement of the funds, however, parents have the choice to defer payment until six months after the student ceases to be enrolled in school on at least a half-time basis, generally extending over a 10-year period
- Parent’s ability to apply for up to the full cost of education minus other packaged student aid
Parents/students must complete the Free Application for Federal Student Aid (FAFSA) and receive a determination of Federal Direct Loan eligibility by the Office of Financial Aid prior to applying for a PLUS Loan.
For more information, please visit https://studentaid.gov.
NOTE: Information about your loans will be reported to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to schools and loan servicers for specific purposes as authorized by the department.