How to apply for Federal Direct Parent PLUS Loans

  • Complete the Master Promissory Note (MPN).
  • To complete the MPN:
    1. Visit: http://studentloans.gov.
    2. Sign in using your Fed PIN Number that you used to sign your FAFSA.
    3. Select "Complete Master Promissory Note," then select "Parent PLUS."
  • A new MPN must be completed each academic year.

PLUS Loan

To qualify for a PLUS Loan, you must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time (6 credits). In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

Credit check & endorser alternative

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have a7n adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.

Loan limits, interest rate, and loan charges

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child's education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. The school will determine the actual amount you may borrow. The interest rate for Direct PLUS Loans is a fixed rate of 6.41%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center.

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay. Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.

APPLYing for Federal Direct Parent PLUS Loans

  • Complete the Master Promissory Note (MPN).
  • To complete the MPN:
    1. Visit: http://studentloans.gov.
    2. Sign in using your Fed PIN Number that you used to sign your FAFSA.
    3. Select "Complete Master Promissory Note," then select "Parent PLUS."
  • A new MPN must be completed each academic year.

Academic
Programs

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