Federal Parent Loans for Undergraduate Students (PLUS)
The Federal Direct PLUS Loan is an unsubsidized federal loan for the parents of dependent students or for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance, minus all other financial assistance. The application process includes a credit approval requirement and interest is charged during all periods, including eligible periods of deferment.
Creditworthy borrowers (graduate students, or the parents of dependent undergraduate students) may borrow up to the full cost of attendance, minus any other aid received by the student. Repayment begins 60 days after the last disbursement is made and can be deferred during the application process or by contacting your loan servicer to request a deferment. Direct PLUS Loans can be deferred while the parent-borrower or child, or graduate student is enrolled at least half-time and for an additional six months after the child or graduate student ceases to be enrolled at least half-time. If the Direct PLUS Loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due. Information about the William D. Ford Federal Direct Loan Program can be found at studentloans.gov.
Previous PLUS loan borrowing will be governed by rate rules in effect at the time of borrowing. There is an origination fee that will be deducted from the principal amount borrowed. When denied, applicants may appeal the credit decision through the Department of Education or reapply with a creditworthy endorser. Alternatively, students whose parents have been denied the Direct PLUS loan (based on credit), may apply for an additional Direct Unsubsidized loan of $4,000 for first- and second-year students, or $5,000 for third-year students and beyond (described under Federal Direct Stafford Loans). The benefit of additional Unsubsidized Stafford eligibility does not apply to graduate students whose Direct Graduate PLUS application has been denied due to credit.