Federal PLUS Loans are offered by the U.S. Department of Education to parents of dependent undergraduate students.
To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form.
Parents of Undergraduate Students
Federal Direct Parent PLUS Loans are offered by the federal government to help parents of dependent undergraduate students pay for their education. Loan eligibility requires no adverse credit history, and parents may borrow varying amounts based on individual student circumstances. Only one parent may borrow per application, and a FAFSA is required for the student.
The borrower utilizes the Department of Education (DOE) Direct Loan website to initiate the required credit check and complete a Master Promissory Note (MPN). The Office of Financial Aid transmits appropriate information to the federal Department of Education (DOE).
An origination fee of 4.276% is deducted from the gross amount borrowed. Repayment begins 60 days after the final disbursement for the loan period and a borrower has 10 to 25 years to repay. In addition, the borrower may defer payments while the student is enrolled at least half-time.
Determining PLUS Maximums
The maximum amount of Direct PLUS loan is the total cost of attendance, minus the student's other financial aid.
The maximum annual amount is $20,000 and the aggregate available is $65,000 per student.
