Federal PLUS Loans

Parent PLUS Loans

Parents can borrow a PLUS loan to help pay educational expenses for their dependent undergraduate students. PLUS loans are available through the William D. Ford federal direct-loan program. Parents must have an acceptable credit history. Prior to applying for a parent PLUS loan, students must complete a FAFSA for the year they are applying for.

Graduate PLUS Loans

Graduate students may be eligible to borrow under the PLUS loan program up to their cost of attendance minus other estimated financial assistance under the William D. Ford federal direct loan program. Prior to applying for a graduate PLUS loan, students must complete a FAFSA for the year they are applying for and must have applied for their annual loan maximum eligibility under the federal unsubsidized Stafford loan program.

Eligibility Requirements for PLUS Loan Applicants

Students must:

• be matriculated in a degree program
• be at least half-time
• maintain good academic standing
• be a citizen, national or permanent resident alien with a valid social security number; must verify their eligible noncitizen status upon request
• not be in default on any federal loan borrowed while attending any institution at any time
• not owe a refund on a federal Pell Grant, FSEOG or federal Perkins Loan (formally NDSL) to any institution
• not be enrolled in overlapping academic terms.

Borrowers must have an acceptable credit history.

Terms and Conditions of PLUS Loans

• For loans disbursed between July 1, 2023 and June 30, 2024, the interest rate is fixed at 8.05 percent.
• There is a 4.228 percent origination fee for PLUS loans disbursed after Oct. 1, 2020.
• Repayment begins 60 days from the last disbursement of the loan.
• Parents and graduate PLUS borrowers may be able to defer payments while in school; deferment options can be reviewed at the Federal Direct Loan site.

Application Process

Students should always complete a FAFSA first and exhaust their annual maximum Stafford loan eligibility. If then interested in applying for a PLUS loan, the process is as follows:

• Submit a PLUS loan application. By doing this, the borrower is giving the Department of Education permission to do a credit check.  The parent (borrower) of a dependent student applying for a Parent PLUS loan should submit the application.  The graduate student (borrower) should submit the application to apply for a Graduate PLUS loan.  The Financial Aid Office will receive confirmation within 5-7 business days.
• Complete a PLUS loan Master Promissory Note. By doing this, the borrower is giving the Department of Education permission to do a credit check. PLUS borrowers also must complete a PLUS entrance counseling form.  The Financial Aid Office will receive confirmation within 5-7 business days.
• Students are notified of either the denial or approval of award.