Direct PLUS Loan
The Direct PLUS Loan is offered through the Department of Education to parents of dependent students.
- 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.
The maximum amount your parent may borrow is listed as “other loan eligibility” on your financial aid award.
Direct PLUS loans have a fixed interest rate of 7.9%.
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 4.204% after 7/1/2013.
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.
Parents are encouraged to apply by the following dates in order to ensure that loan funds arrive in time for the start of the semester. Loans can be processed throughout the term as long as both the student and parent continue to meet eligibility guidelines.
- July 1 - full year and fall semester loans
- December 1 - spring semester loans
- May 1 - summer semester loans
Once you’re informed of your eligibility, you can process your PLUS loan.
Get more information about the Direct PLUS Loan from the U.S. Department of Education.