Federal Direct PLUS Loan (Undergraduate)
The Federal Direct PLUS Loan is not based on need and is available to parents of dependent children. This loan can be used to replace the Expected Family Contribution up to the cost of attendance to help meet any additional expenses that you cannot cover with the Federal Direct Loan. All Federal Direct PLUS loans are unsubsidized, meaning they begin to accrue interest immediately.
How to Apply
Your parents can apply for a Federal Direct PLUS Loan by submitting an application at www.studentaid.gov after you complete your FAFSA. The applying parent will be asked to sign a promissory note and a credit check will automatically occur upon applying for the loan. A co-signer is not required unless the loan is denied, at which time it would be recommended to acquire a co-signer.
If the Parent PLUS Loan application is denied, the student is eligible for additional unsubsidized loan funding. Dependent students in this scenario become eligible for increased borrowing limits usually reserved for independent students. Read more information about annual loan limits.
Rates, Fees & Repayment
The interest rate for these loans is 5.30% for loans disbursed between July 1, 2020 and June 30, 2021. Origination fees are currently 4.248%.
Repayment begins 60 days after the final loan disbursement, but can be deferred (with interest accruing) up to six months after the student ceases to be enrolled at least half time.
For more information on this loan program, we recommend this FAQ from Federal Student Aid.
For information on a specific Federal Direct PLUS Loan you have borrowed, access the National Student Loan Data System (NSLDS). NSLDS is the U.S. Department of Education’s central database for federal student aid. The site displays information on loan amounts, outstanding balances, loan statuses, and disbursements. In order to use the NSLDS Student Access website, you will need to log in with your FSA ID and password.