Federal Parent PLUS Loan for Undergraduate

FALL/SPRING 2023-2024

  1. Federal Direct PLUS Loan Application for Parents  
  2. Must choose the 2023-2024 award year
  3. Loan period  Fall/Spring August 2023-May 2024 (recommended) 
  4. PLUS MPN (Master Promissory Note) for Parents

The Direct PLUS Loan for Undergraduate students is available to credit-worthy parents of dependent undergraduate students. Before applying, make sure you or your child have already filled out the Free Application for Federal Student Aid (FAFSA).  For more information, visit studentaid.gov.

Q. The PLUS Loan Application allows you (the parent) to: 

  • request a Direct PLUS Loan;
  • change the amount of a Direct PLUS Loan you previously requested;
  • authorize how the school may use your Direct PLUS Loan funds to pay for educational expenses;
  • designate who the school pays any credit balance to; and
  • request deferment of repayment while the student is in school and for up to 6 months after.

Q.  Am I eligible for a parent PLUS loan?

  • be the biological or adoptive parent (or in some cases, the stepparent)of a dependent undergraduate student enrolled at least half-time at an eligible school
  • not have an adverse credit history unless you meet certain additional requirements); and
  • meet the general requirements for federal student aid

Note:  Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive parent PLUS loans, even if they have had primary responsibility for raising the student.

Q.  What are the next steps if the Direct Parent PLUS Loan is denied? 

A.  If the loan application is denied, you will be given the option of:

  • obtaining a credit-worthy endorser or
  • appealing the credit decision
  • the student can receive an additional Undergraduate Direct Unsubsidized Stafford Loan
  • Questions concerning your credit decision should be directed to Federal Student Aid at 1-800-433-3243.
  • More information on what to do if denied based on adverse credit history, visit studentaid.gov   

PLUS Counseling - is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have:

  • Obtained an endorser or
  • Documented extenuating circumstances to the satisfaction of the U.S. Department of Education
    • The information causing the adverse credit decision is incorrect or
    • There are extenuating circumstances relating to the adverse credit history    

Q. Do I have to complete the Direct PLUS Loan Application for Parents each year?

A. Yes. Each subsequent year, the parent will need to go through a credit check and request the annual loan amount.

Q. If I completed a Direct PLUS Loan MPN for my dependent child, do I have to complete another one?

A. No. The Direct PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college provided you do not require an endorser.
A. Yes. If the Direct PLUS Loan was approved with a credit-worthy endorser in the prior year, a new Electronic Master Promissory Note will need to be completed.

Federal Direct PLUS Loan applications must be certified by the Financial Aid Office by the last day of the semester or before the student is no longer enrolled.

Loan Limits per Academic Year:
The maximum parents may borrow in the Federal Direct Parent PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Aggregate Loan Limits:
There is no aggregate limit.

Interest Rate:

Loans disbursed between July 1, 2022 and June 30, 2023 have a fixed interest rate of 7.54%.

Loans disbursed between July 1, 2023 and June 30, 2024 have a fixed interest rate of 8.05%.

Effective December 1, 2013, sequestration of federally budgeted funds occurred. 

The origination fee is 4.228% from October 1, 2020 through September 30, 2024.  The amount equals 95.772% for each disbursement of the loan.

Loan Reductions/Cancellations:
Parents may request the Federal Direct Parent PLUS Loan be reduced or canceled. The request must be in writing from the parent, not the student. Please include the parent borrower's name, the student's name, the student's Royal ID number, and the amount you want the loan reduced to.

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