The Direct PLUS Loan is a credit-based loan available to the parents of undergraduate students who have filed a FAFSA. The parent borrower may borrow up to the cost of attendance (tuition, fees, housing, and meals billed by the university, plus a standard calculation for books, supplies, transportation, and personal expenses), less any other financial aid awarded.

Parents may apply for a Direct PLUS Loan for any year that their student is enrolled at least half-time as an undergraduate student. Under the Federal Direct Student Loan program, the federal government serves as the lender and the interest rate varies based on disbursement date but then is fixed for the life of the loan. See a chart to determine interest rates and loan origination fees. Origination fees are subtracted proportionately from each disbursement.

How to Apply

Applications for the Direct PLUS Loan are processed online through the U.S. Department of Education student loan website. To submit an application:

  1. Log in the U.S. Department of Education student loan website to begin your application process
  2. Enter the FSA ID and password of the parent applying for the loan
  3. Select Request a Direct PLUS Loan
  4. Select the loan type Parent PLUS
  5. Complete the four step application process
    1. School & Loan Information
    2. Borrower Information
    3. Review Request
    4. Credit Check & Submit
  6. First-time borrowers must complete a Master Promissory Note (MPN)

Repayment

The repayment period for a Direct PLUS Loan begins at the time the loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. Borrowers may request an in-school deferment by calling the Direct Loan Servicing Center at 800.848.0979. Payments under the deferment option are deferred until six months after the student ceases to be enrolled at least half-time, although interest continues to accrue. Some families make interest-only payments while a student is enrolled and delay repayment of the principal until after the student graduates.

The Direct PLUS Loan Program for parents offers three repayment plans - standard, extended, and graduated - that are designed to meet the different needs of individual borrowers. The terms differ between the repayment programs, but generally the standard repayment period on a PLUS Loan is 10 years.

Federal Student Aid ID

Your Federal Student Aid ID (FSA ID) is used each year to electronically sign your student's FAFSA. Because the FSA ID is needed to apply for your Federal Direct PLUS, you cannot proceed without it.

Apply for an FSA ID
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