Direct PLUS Loans
The Direct PLUS Loan is offered by 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 6.41% for loans first disbursed after July 1, 2013 to June 30, 2014.
The borrower pays the lender to help cover the cost of processing the loan. It’s calculated as a percentage of the amount borrowed.
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 the PLUS Loan. Servicer contact information is available at the National Student Loan Data Service website: www.nslds.ed.gov (by phone: 800.433.3243). Your parent will need their Federal Student Aid PIN to log in to the NSLDS website.
Learn more about repayment options.
How to Apply
- Apply for aid to see if you’re eligible to borrow a PLUS loan.
- If you’ve borrowed your maximum annual subsidized/unsubsidized loans but need additional funds, your parent can process a PLUS loan.
More About Direct Loans
For more on Direct Loans, check out information from the U.S. Department of Education: