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Federal Direct PLUS Loan
The Federal Direct PLUS Loan program allows borrowers and their families to apply for and receive more funds beyond direct Stafford loans.
Federal PLUS loans help pay up to the cost of attendance for education expenses minus all other financial assistance. Interest begins to accrue immediately and continues to capitalize until the loan is fully repaid.
Direct Parent PLUS Loans
Parents of dependent students can take out direct Parent PLUS loans to supplement their children's financial aid packages. The federal PLUS loan is a federal student loan that allows parents to borrow money to cover any expenses not already paid by the student's financial aid package, up to the full cost of attendance.
Request Direct Student Loan Information
To be eligible, a parent must apply and pass a credit check (TIP - know your credit score). If unable to qualify, they still might be able to receive a loan if a relative or friend who can pass the credit check agrees to endorse the loan, promising to repay if the parent fails to do so.
Apply With a Co-signer
While not required, we strongly encourage undergraduate students who may have difficulty qualifying for a loan due to limited income and credit history, to apply with a creditworthy co-signer. This may increase an applicant's chances of approval and possibly obtaining a better interest rate.
Direct Graduate PLUS Loans
Graduate PLUS Direct Loans for Graduate students are also available through the PLUS Loan program. Unlike the Parent PLUS loan, graduate students can apply on their own and approval is based on the student’s credit score. Interest is tax deductible for most grad students.
How much can I borrow with the Federal Direct Plus Loan program?
The yearly limit for the PLUS loan is equal to the cost of attendance minus any other financial aid your child receives. For example, if your child's cost of attendance is $8,000 and your child receives $3,000 in financial aid, you can borrow up to $5,000 with a PLUS loan.
How can I get the Federal Direct Plus Loan?
The parent or grad student who plans on borrowing the loan should submit a completed PLUS application to the financial aid office at the child's school. In addition, the Master Promissory Note (MPN) can be filled out online at StudentLoans.gov.
Get the Money you Need with a Private Student Loan
- Cover additional costs not met by other financial aid
- Borrow up to the cost of attendance and pay for tuition, housing, etc.
When will I get my money?
In most cases, your loan will be disbursed in two installments. Money will be used first to pay your child's tuition and fees. If any loan money remains, the borrowing parent receives that amount, unless he or she has authorized it to be released to the child's account. Schools must notify parents when funds are credited. Lenders send funds directly to the school.
Can I cancel the Federal Direct Plus Loan?
Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before and no later than 30 days after the school credits your account. You may cancel all or a portion of your loan if you inform your school within 14 days after the date that your school sends you this notice or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.
What is the interest rate of the Federal Direct Plus Loan?
The interest rate for new direct PLUS loans is fixed at 7.9% APR through July 1, 2011.
What are my repayment options?
The lender will arrange a repayment schedule. You have up to 10 years to repay your loan, and you must pay at least $50 a month. Repayment of principal and interest begins 60 days after the loan is fully disbursed. Parents can opt to let the interest capitalize until the student leaves school.
However, any interest that accrues from the date of disbursement is added to the outstanding loan balance through a process called capitalization. Also, always consider consolidating your direct PLUS loan as a way of lowering your monthly payment and locking in low rates. Graduate students can defer payment while they are enrolled at least half time in school.
