Federal Direct PLUS Loan Program
Parents of undergraduate students may borrow up to the cost of education per year for each financially dependent student, taking into account all other financial aid received. Students whose parent is applying for a Parent Loan must first file the FAFSA to explore all grants and other aid for which the student may be eligible, including student loans. In order for a parent to borrow in this program, the student must not be in default on any prior federal loans, must not owe a refund to any federal aid programs, meet federal satisfactory academic progress standards, be in good academic standing and be registered for 6 or more credits or equivalent credits.
Parents must be U.S citizens or eligible permanent residents, not be in default on any prior loans and meet credit approval.
The interest rate on a Federal Direct PLUS Loan is calculated each year based on the 10-year Treasury Bill rate plus 4.6% and is capped at 10.5%. For loans first disbursed on or after 7/1/17 and before 7/1/18 the interest rate is 7 %.
Loan fees for Direct PLUS Loan if was disbursed on or after 10/1/17 and before 10/1/18 is 4.264% . For loans first disbursed on or after 10/1/16 and before 10/1/2017 is 4.276%.
Repayment begins within 60 days of disbursement, unless a deferment applies.
For more information, please click https://studentaid.ed.gov/types/loans/plus
Effective with HR 5715 regulation, dependent undergraduate students whose parents are unable to borrow a PLUS Loan due to an adverse credit history may, upon documentation that the parent has been denied a PLUS loan, borrow up to $9,500 (no more than $3,500 in a subsidized loan if a first year student who has completed fewer than 30 credits), and $10,500 (no more than $4,500 in a subsidized loan if a second year student who has completed more than 30 credits).