Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is a low-interest, unsubsidized federal loan that allows a parent (biological, adoptive, or in some cases, step-parent) of a dependent student to assist in paying for the student's college education.

Information

The student and his or her parent(s) and/or step-parent must submit the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine the student's eligibility for all federal student aid programs, including the Parent PLUS Loan.
Students do not have to demonstrate financial need to be eligible for this loan.
The annual maximum loan amount is based on the student's cost of attendance less other financial aid received.
The parent-borrower must be the student's biological or adoptive parent. If a step-parent applies for the Parent PLUS loan, they must be listed on the FAFSA.

Eligibility requirements

Students must be enrolled at least half-time (6 credit hours during fall/spring and 5 credit hours during summer).
The parent-borrower must not have adverse credit history.
Students must meet the eligibility requirements for the federal student aid programs.

What if I have an adverse credit history?

If the parent-borrower has an adverse credit history, he or she may still receive the Parent PLUS loan by either:

Obtaining an endorser for the loan who has a positive credit history; or
Appealing the credit decision with the U.S. Department of Education by documenting that there are extenuating circumstances related to the parent-borrower's credit history.

Otherwise, the student will be offered an additional Federal Direct Unsubsidized loan. The amount of additional unsubsidized loan that can be offered to the student is dependent on his/her grade level.

Freshmen and sophomores will be offered up to $4,000.
Juniors and seniors will be offered up to $5,000.

The exact amount can vary from student to student. The student's total financial aid cannot exceed the cost of attendance.

For additional information on the Federal Direct Parent PLUS Loan, please visit the U.S. Department of Education.