The Direct PLUS Loan is a credit-based loan which allows parents to borrow up to $20,000 per year or up to any remaining unmet costs, whichever is less. Unmet costs are determined by the full cost of attendance minus any offered financial aid.
A loan fee is deducted from each disbursement. For more information on interest rates and origination fees, please visit the Department of Education website.
The maximum aggregate amount a parent may borrow per dependent is $65,000.
Parents must complete two items each year a Direct PLUS Loan is needed:
- Your student must complete the Free Application for Federal Student Aid (FAFSA) each year you wish to borrow a PLUS Loan.
- Complete a PLUS Loan Application each year.
We have additional information on applying for the PLUS Loan for parents and families.
Repayment
Repayment on a Direct PLUS Loan begins once the loan is fully disbursed, with the first payment due within 60 days of the final disbursement. However, borrowers may request an in-school deferment by selecting the deferment option on the application or by contacting the Direct Learn Servicing Center at 800-848-0979. Under this option, payments are deferred until six months after the student is no longer enrolled at least half-time, although interest continues to accrue during this period. Some families choose to make interest-only payments while their student is enrolled, postponing repayment of the principal until after graduation.
The Direct PLUS Loan Program for parents offers several repayment plans that are designed to meet the different needs of individual borrowers. The terms differ between the repayment plans, but generally the standard repayment period on a PLUS Loan is 10 years. More information can be found on Federal Student Loans website.