The Federal Plus Loan program is available only to parents of dependent students. It is not need-based, but the parent’s credit worthiness affects the outcome. Interest rates are currently at 7.9%. Repayment may begin while the student is still in school. The maximum amount available to borrow may not exceed the total cost of attendance less any other aid to be received.
Applying for Federal PLUS – (Parent Loan for Undergraduate Students)
Parents of dependent students apply online in a two-step process. The brief online application determines credit worthiness. An immediate decision is given. Once approved, the Master Promissory Note (MPN) must also be completed. When the student’s financial aid file is complete, the school will originate the Parent Loan and schedule the disbursements.
Both the application and MPN are completed at www.studentloans.gov. The parent must sign in with their own federal Personal Identification Number (PIN), not the student’s.
Please note: If a parent is denied a Parent Loan, the dependent student is considered independent for loan purposes and eligible to borrow the same maximum amount as an independent student.
More information about all federal loan programs is available at www.studentloans.gov.