A Parent PLUS Loan is a Federal Direct Loan offered to parents of undergraduate students through the Department of Education. The PLUS loan is a credit-based loan that many parents borrow to help pay educational expenses. A parent is only eligible if the student is determined to be “dependent” as a result of their FAFSA. Parents may borrow up to the cost of attendance after all other aid has been deducted. The interest rate on the Parent PLUS Loan is determined annually by federal law. Similar to Stafford Loans for students, the PLUS loan also has an origination fee associated with it as a term and condition of borrowing the loan.

There is a separate application for the Parent PLUS Loan. Parents need to reapply each year to be awarded the loan. Please see below for a list of eligibility requirements.

Eligibility Requirements

• You must be the biological, step (if included on the FAFSA) or adoptive parent of the dependent student
• You must meet the same citizenship criteria as the student for financial aid
• You must not have an adverse credit history
• The student must be meeting Satisfactory Academic Progress (SAP)
• A valid, current year FAFSA must be completed

If a parent is denied a PLUS loan, there are still options available to both the parent and the student. The parent may choose to appeal the decision of the denial that documents an extenuating circumstance through Direct Lending. You should then contact Direct Lending at 1-800-557-7394 for additional instructions on how to proceed including how to complete the additional loan counseling requirement online. A parent may also choose the option of pursuing an endorser for the loan. You will also want to contact Direct Lending for additional instructions on how to proceed. If the endorser is approved, please contact your Financial Aid Office informing them of this outcome. Finally, the student may apply for additional Unsubsidized Stafford Loan funds if you select that you no longer wish to continue with the Direct PLUS loan. Next, the process will be reviewed by our Financial Aid Office within 10 business days of the receipt of information. We will process the additional unsubsidized loan for the maximum amount the student is eligible to receive based upon their grade level. The student will then receive an updated award letter listing the additional funding.