Federal Direct Parent PLUS Loan
Parents of undergraduate students may borrow a Federal Direct Parent Loan for Undergraduate Students (PLUS) to help cover their child's educational expenses while attending college. Parents can borrow up to the full cost of attendance minus all other financial aid awarded to the student. Parents may borrow each year but must reapply and complete a new credit check annually. Parents must begin repaying both principal and interest while the student is in school. The first payment is due within 60 days after the loan is fully disbursed. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made.
The current interest rate and loan origination fees on PLUS loans can be found on the Federal Student Aid website.
How to apply for a Parent PLUS Loan
- A Federal Student Aid (FSA) ID is necessary to complete the process. Go to fsaid.ed.gov to create your FSA ID.
- Complete the Direct PLUS loan online application. An instant credit check is a part of this application process.
- Complete the Direct PLUS Loan Master Promissory Note (MPN). Borrowers must complete this step before funds will be made available.
Learn more on the Federal Student Aid website
Who is eligible
In order to borrow a PLUS loan, a parent must be:
- the biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school
- not have an adverse credit history
- meet the general eligibility requirements for federal student aid
Note: Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive parent PLUS loans, even if they have had primary responsibility for raising the student.
Denied applications
If a parent is denied a Parent PLUS Loan due to adverse credit history, they will need to select one of the following options:
- Appeal the decision and complete PLUS Credit Counseling - Parents must document to the satisfaction of the U.S. Department of Education that the information causing the adverse credit decision is incorrect, or there are extenuating circumstances related to your adverse credit history.
- Obtain an endorser and complete PLUS Credit Counseling – An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you do not repay it.
- Request Wayne State College to offer an additional unsubsidized loan to the student – This is a loan that the student is now eligible for based on the parent receiving a denial of the Parent PLUS loan. The loan will be offered to the student on WildcatsOnline, and they will have to log in to accept it. This request must be made in writing.
- More information can be found at studentaid.gov.