Federal Direct PLUS Loan for Parents

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. Additional terms, subject to revision by federal regulation, include:

  • 7.60% fixed interest rate during repayment for loans disbursed prior to July 1, 2019
  • 7.08% fixed interest rate during repayment for loans first disbursed on July 1, 2019 and after
  • 4.248% origination fee for PLUS loans with a first disbursement date prior to October 1, 2019
  • 4.236% origination fee for PLUS loans with a first disbursement date on or after October 1, 2019
  • 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 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.

Also, you may wish to review the additional Direct Unsubsidized Loan borrowing option available to the student prior to applying for the PLUS Loan.

Additional information of the Federal Direct PLUS Loan is available from the Department of Education.

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.