Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is a credit-based government-sponsored fixed interest loan. A Free Application for Federal Student Aid (FAFSA) and a credit check are required for approval of this loan.

Loan Limits

Cost of attendance minus other financial aid. The amount borrowed may replace the expected family contribution.

Interest Rate

Fixed at 7.9 percent with interest beginning to accrue upon disbursement. 

Loan Fees

The Federal Direct Parent PLUS loan has a 4 percent origination fee.

Loan Eligibility

Parent borrower must be a U.S. citizen or eligible non-citizen and have a satisfactory credit rating. The student must be a dependent of the parent, a U.S. citizen or eligible non-citizen and enrolled at least half-time.  

Disbursement Terms

In a typical academic year, Federal Direct Loans are disbursed in two installments. When the academic period is for one semester or for the summer term, one disbursement is permitted at the beginning of the term. During the regular academic year (fall/spring semesters) funds cannot disburse more than 10 days prior to the first day of class. For the summer term, funds cannot disburse more than five days prior to the first day of class.  

Grace Period

Repayment typically begins 60 days after the final disbursement of the loan. Parents may request an in-school deferment with the U.S. Department of Education. If the deferment is approved, repayment will begin six months after the student completes his or her program. If a parent has an approved deferment and the student drops below half-time enrollment or withdraws from the University, the parent borrower will enter into a six-month grace period prior to repayment of the loan.

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