Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Beginning July1, 2011, a valid FAFSA is required to apply for a Direct Parent PLUS Loan.
The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. There is also an origination fee that comes out of the amount you borrow. The loan fee is 4.0%.
You must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time.
Parent PLUS loan borrowers cannot have an adverse credit history as a credit check is required. In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. Read more about Direct Parent PLUS loans.
If you’re a parent PLUS borrower, you can defer repayment of Direct PLUS Loans first disbursed on or after July 1, 2008 while the student for whom you obtained the loan is enrolled at least half time, and for an additional 6 months after the student graduates or drops below half-time enrollment (less than 4 credits). You must separately request each deferment period.
Generally, you’ll have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You can choose to repay your PLUS loan using the Standard, Extended, or Graduated repayment plan. Read more about repayment plans.