The Federal Parent PLUS loan program is directed to natural, adoptive, and in some cases step-parents of dependent undergraduate students. Eligibility is based on credit, not income or need. Parents may borrow up to the cost of attendance minus other financial aid for each student enrolled at least half-time.
Repayment of the Parent PLUS loan begins between 30 to 60 days after the loan is fully disbursed; however, deferment of payments while the student is enrolled may be requested by contacting the Direct Loan Servicing Center. Interest rates are established each year for which the first disbursement is on or after July 1 through the following June 30. This interest rate is then fixed for the life of the loan. The interest rate cap is 10.50%.
Interest Rates for Direct Loans first disbursed on or after July 1, 2018, and before July 1, 2019
- For the 2018-2019 academic year, the fixed interest rate is 7.6%
There is a 4.264% origination fee for loans borrowed between Oct 1, 2017 and Oct 1, 2018. PLUS loans borrowed between Oct 1, 2018 and Oct 1, 2019 have an origination fee of 4.248%.
Parents who wish to apply for a PLUS Loan will need to complete the PLUS Loan Credit Authorization each year. In the initial year, the parent will also need to complete a Master Promissory Note (MPN). Complete both steps online.
Please note: the parent requesting a PLUS loan must log in with their FSA ID to complete an application. If you do not have an FSA ID, please follow the steps provided to create one. Once the borrowing parent is logged in, click on the “Apply for a PLUS loan” link and choose Parent PLUS to get started.