Federal Direct Parent PLUS Loan
The Parent Loan for Undergraduate Students (PLUS) is an unsubsidized federal loan for the parents of dependent students. PLUS Loans may be used to help pay for education expenses up to the cost of attendance minus all other financial assistance. Learn more about the PLUS Loan and other federal aid programs on the U.S. Department of Education's Guide to Federal Student Aid.
- Who Can Borrow: Parents (U.S. citizens or eligible noncitizens) of dependent students with satisfactory credit history.
- Lender: Department of Education
- Loan Amount: Up to the cost of attendance, minus any other aid the student has received.
- Interest Rate: 6.28% for 2021-22. 5.30% for 2020-21. Interest is charged from the date of the first disbursement until the loan is paid in full.
- Fees: A 4.228% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2022. Use our online federal loan fee calculator to determine the impact of fees on your loan.
- Repayment Terms: Repayment of the principal begins within 60 days of the final disbursement of funds for the academic year. A minimum payment of $600 per year is required, and the borrower has a maximum of 10 years to repay the loan.
- Deferment: Parents may choose to defer payments on a PLUS Loan until six months after the student ceases to be enrolled at least half-time. Accruing interest can either be paid by the parent borrower monthly or quarterly, or capitalized quarterly (indicated on your PLUS Request and to be paid to the servicer). To assist with planning, the Department of Education provides very helpful budget and repayment calculators.
- Application Instructions: Families need to complete a FAFSA (see Apply for Aid for more information) for the appropriate academic year. Parents should also complete the PLUS Loan Request as well as a Parent PLUS Master Promissory Note, found by logging onto www.studentaid.gov with your Federal Student Aid (FSA) ID. A credit check is required. Families should not apply for a PLUS Loan earlier than mid-June for an upcoming academic year since it requires a credit approval that is only valid for 180 days.
Watch the video below for more information on PLUS Loans.