Federal Direct PLUS Parent Loans
This parent loan is available to credit-worthy* parents of undergraduate students regardless of income. This loan program allows parents to borrow the difference between the cost of education and the financial assistance the student is scheduled to receive.
The current interest rate on the Direct Parent PLUS Loan is fixed at 6.41%. If you choose to apply for this loan, you must complete a credit check and sign the Federal Direct PLUS Loan Master Promissory Note (MPN).
Please keep in mind that The Federal PLUS loan is subject to a 4.204% loan fee. Please plan to request your yearly PLUS Loan amount to include the 4.204% in fees. An easy way to account for these fees is to simply divide the amount you need by .95796. As an example, if you need 10,000 to cover costs you will need to request 10,438 (10,000 /.95796=10,438).
Parent PLUS Loans should be requested for the full year's balance as it will be automatically split between the two terms.
For more information on the Parent PLUS Loan please see our publication Responsible Borrowing: Your Guide to Comparing Federal Parent PLUS Loans and Private Alternative Loans and Private Alternative Loans
Applying for the Parent PLUS Loan
Step 1: Read "The Facts" above for information on accounting for the mandatory federal fees. When you have decided you wish to apply for the PLUS Loan, and know how much you wish to borrow, please login to http://studentloans.gov and choose "Start the PLUS Application Process."
Read "The Facts" above for information on accounting for the mandatory federal fees. When you have decided you wish to apply for the PLUS Loan, and know how much you wish to borrow, please login to http://studentloans.gov and choose "."
Please note: To apply online you must have your parent assigned Federal PIN number (the one you used to electronically sign the FAFSA).
For more information on the PIN see below.
(Don't Stop Here! Proceed to Step 2 below.)
Step 2: After you have completed completed your PLUS Application and credit-check make sure you continue the process on the studentloans.gov website to take the final step of completing your Direct Parent PLUS Loan Master Promissory Note (MPN).
If you encounter any problems completing the above requirements on the studentloans.gov website feel free to contact Applicant Services at the Department of Education at 800-557-7394 for general website support and assistance in completing your PLUS application requirements in Steps 1 and 2.
You will be required to use your U.S. Department of Education issued PIN to complete an electronic MPN. This is the same PIN that was used to complete the signature on the FAFSA. For additional information or to ask general PIN questions, you can visit the official PIN site.
*To meet the credit worthiness requirements, an applicant cannot be 90 days or more delinquent on the repayment of any debt, the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write off of a Title IV debt during the last five years. If a parent fails the credit test, the student may borrow additional unsubsidized loan money up to $4,000 additional for freshman and sophomores, and up to $5,000 more for juniors and seniors.