Direct PLUS Loan
The Direct PLUS Loan is offered through the Department of Education to parents of dependent students.
Eligibility
- The borrower must be the biological or adoptive parent (or, in some cases, the stepparent) of the student.
- The student must be a dependent student who is enrolled at least half time.
- The borrower must pass a credit check for approval.
- Both the parent borrower and student must be U.S. Citizens or eligible noncitizens.
Amount
The maximum amount your parent may borrow is listed as “other loan eligibility” on your financial aid award.
Interest Rate
Direct PLUS loans have a fixed interest rate of 7.9%.
Loan Fees
What is a loan fee? It’s what the borrower pays the lender to help cover the cost of processing the loan. It’s typically calculated as a percentage of the amount they are borrowing.
The fee for a Direct PLUS Loan is 4%. After 7/1/2012, there is no longer a 1.5% rebate to this fee.
Repayment
Parents enter repayment 60 days after the loan is fully disbursed (approximately April 1 for a full year loan) with a minimum payment of $50 per month. However, your parent may request to delay repayment until 6 months after you graduate or are no longer enrolled at least half time.
To request a deferment, your parent will need to contact the servicer of their PLUS Loan. This contact information is available on www.nslds.ed.gov or by calling 1.800.433.3243. Your parent will need their Federal Student Aid PIN to log in to the NSLDS website.
Learn more about repayment options.
Deadlines
- July 1 for full year and fall semester loans.
- December 1 for spring semester loans.
- May 1 for summer semester loans.
How to Apply
If you’ve borrowed your maximum annual Perkins and Subsidized/Unsubsidized loans but need additional funds, contact our office to find out if you’re eligible to apply for the Direct PLUS loan.
Once you’re informed of your eligibility, you can process your PLUS loan.
More Information
Get more information about the Direct PLUS Loan from the U.S. Department of Education.
