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Parent Loan for Undergraduate Students (PLUS)

What is a Federal Direct PLUS Loan?

A federal Direct PLUS Loan (PLUS) is a loan a parent can borrow from the U.S. Department of Education to help fund the educational expenses of their dependent undergraduate student. This loan is in the parents’ name, and they are solely responsible for repaying the loan. The student is not responsible for repaying this loan, and it cannot be transferred to the student when they graduate.

Qualifications

  • Parent borrower and student must not be in default on a federal loan or owe an overpayment of other federal student aid
  • Parent borrower must be a biological or adoptive parent or an eligible step-parent
  • Parent, borrower, and student must be U.S. citizens, nationals, or permanent residents
  • Students must file a
  • Students must maintain Satisfactory Academic Progress (SAP)
  • The student must be enrolled at least half-time
  • Parent borrowers must not have an adverse credit history. For additional information on what is considered adverse credit, visit

Interest and origination fees

Interest begins when the funds are disbursed to the student’s college account and continues until the loan is paid in full. The parent can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of the loan). Capitalizing the interest will increase the amount you have to repay. 

Current Interest Rate for Direct PLUS Loans?
New fixed interest rates are determined each year and apply to all loans first disbursed during the period from July 1 of the current year through June 30 of the following year.

If you got your Direct PLUS Loan on or after July 1, 2024, and before July 1, 2025, it will have a fixed interest rate of 9.08% after the payment pause ends. If your loan was disbursed before July 1, 2024, it likely has a different interest rate. .

Learn more about . Learn more about what a .

Loan repayment status

StatusDefinition
RepaymentRepayment begins once the loan is fully disbursed (entire amount of the loan has been applied to the student’s college account).
DefermentDeferment is a temporary suspension of making payments. For information about deferring payment of a Parent Plus Loan while a student is enrolled in school, the parent borrower can contact the loan servicer. The Loan servicer is assigned when the loan is disbursed.

Direct PLUS application and other required documents

  • Use the Department of Education’s online application to apply for a federal Direct Parent PLUS loan at
    • Parents must log in using their own federal student aid ID (FSA ID) and password
    • The application asks what academic year the parent wants to apply for and what semesters they want to borrow the loan for. In general, À¶Ý®ÊÓƵ Tech’s regular academic year begins in the fall semester and ends with the spring semester. Summer is tacked on to the end of the academic year. Fall semester (August – December) Spring Semester (January – May) Summer Semester (June – July)
  • Complete a Master Promissory Note
  • is only required if the parent was initially denied a PLUS loan and obtained an endorser, or is approved based on an appeal

Disbursement of funds

Funds are applied in one or two installments, depending on the time period for which the loan is requested.

  • Fall loan – one installment
  • Spring loan – one installment
  • Fall and spring loan – two installments (one for each semester)
  • Summer loan – one installment

Funds are first credited to the student’s account to pay any balance due for tuition, fees, and other school charges. Parents then sign a form authorizing extra funds to be refunded to the student.

Additional information about PLUS Loans

For additional information about Direct Parent PLUS Loans, visit .

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