The Federal Direct Parent PLUS Loan is a non-need based loan available to the parents of dependent students. This loan is a credit-based loan and is the responsibility of the parent. The total amount a parent may borrow cannot exceed the total cost of attendance for their student. The amount is determined by the total cost of attendance minus all financial aid resources.
Payment on the Parent PLUS loan begins 30-60 days after the final disbursement. The parent may request an in school deferment while the student is enrolled at least half time. The interest on the Parent PLUS loan begins accruing at the time of disbursement.
A parent is defined as the biological, adoptive, or step-parent whose information is included on the FAFSA.
Master Promissory Note
All parents who apply for a Federal Direct Parent PLUS Loan are required to complete a Federal Direct Loan Master Promissory Note (MPN). The MPN can be completed online.
The MPN is your contract with the U.S. Department of Education. By signing the MPN, you promise to repay your loans. The MPN is good for up to 10 years and you may receive additional loans using the same MPN.
The interest rate for the Federal Direct Parent PLUS Loan for 2016-2017 is fixed at 6.31% for the life of the loan.
For loans that have a first disbursement on or after October 1, 2015, the Federal Direct Loan Program charges a 4.272% loan fee on all Parent PLUS loans. The loan fee is deducted from each disbursement of the loan. This means that 95.728% of the loan will be applied to the student account. This fee will remain in effect unless Congress makes a change.
For loans first disbursed on or after October 1, 2016, the loan fee will be 4.276%. This means 95.724% of the loan will be applied to the student account.
How to Apply
The parent may request a Parent PLUS Loan and complete the Parent PLUS Loan MPN at the link provided below.