Federal Direct Parent PLUS Loan Terms and Conditions

Interest Rates

  • 7.21% fixed interest rate for Federal Direct Parent PLUS loans first disbursed on or after July 1, 2014
  • Interest begins to accrue on the date of the first disbursement until the loan is paid in full.

Origination Fee

  • The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Parents are responsible for repaying the entire amount they borrowed, and not just the amount they received.
First Disbursement Date       Origination Fee
On or after Dec. 1, 2013, and before Oct. 1, 2014       4.288%
On or after Oct. 1, 2014, and before Oct. 1, 2015       4.292%



  • Repayment typically begins 60 days after the loan is fully disbursed.  
  • Parents may choose to defer payments by contacting their loan servicer.
  • Parents choose a repayment plan and find out how and when to repay the loan.  

Federal Direct Parent PLUS Loan Eligibility

  • The parent-borrower must be the student's biological or adoptive parent. If a step-parent applies for the Federal Direct Parent PLUS loan, he or she must be listed on the student's Free Application for Federal Student Aid (FAFSA).
  • Although the Federal Direct Parent PLUS loan is a non-need based loan, federal regulations require the student and his or her parent(s) and/or step-parent(s) submit a FAFSA.
  • The parent-borrower of a Federal Direct Parent PLUS loan must pass a credit check as part of the loan application process.

Note: If the parent or step-parent applying for the Federal Direct Parent PLUS loan is denied from borrowing the loan due to credit reasons, he or she will be notified by the U.S. Department of Education and provided with the opportunity to obtain an endorser for the loan. If the parent chooses not to use an endorser, the student may be eligible for an additional Federal Direct Unsubsidized Loan not to exceed the student's cost of attendance. Freshman and sophomore students may borrow up to an additional $4,000 in a Federal Direct Unsubsidized Loan while junior and senior students may borrow up to an additional $5,000. If the parent chooses to use an endorser, the U.S. Department of Education will notify the OSFA if the loan is approved.