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 “PLUS/Private Loan Eligibility” on your financial aid award.
Direct PLUS loans have a fixed interest rate of 7.21% for loans first disbursed after July 1, 2014, to June 30, 2015.
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 4.288% after 12/1/2013. Beginning October 1, 2014, the PLUS fee will change to 4.292%.
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 his/her 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: