How to Apply for a Federal Direct Parent PLUS Loan
- Submit the Free Application for Federal Student Aid (FAFSA) for your dependent student.
- Complete the PLUS Request Process at https://studentaid.gov/app/launchPLUS.action?plusType=parentPlus. Follow the instructions carefully. In addition, you will be instructed to sign a PLUS Loan Master Promissory Note for parents with the William D. Ford Direct Loan Program.
Federal Direct PLUS Loan Program Information
The Federal Direct Parent Loan for Undergraduate Students (PLUS) provides long-term loans to parents for their dependents through the U.S. Department of Education. Loan amounts under this program are limited to the student's cost of education minus other financial aid awards. The repayment period for each Direct PLUS Loan begins on the date the final loan disbursement is made. There is no grace period for Direct PLUS Loans. However, parents have the option of postponing payments until six months after the student ceases to be enrolled at least half time.
The current interest rate for Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021, is 5.30%. The origination fees are below. Parents may be denied a PLUS Loan due to adverse credit history. If the PLUS Loan is denied, the student is eligible for an additional Unsubsidized Direct Loan.
NOTE: An origination fee will be assessed and automatically deducted for a PLUS Loan disbursed on or after October 1, 2017 and before October 1, 2018. The net disbursement will reflect this fee; therefore, the amount credited to the student's account will be less than the loan amount. This fee is determined by the U.S. Department of Education.
Loan Fees for Direct PLUS Loans
First Disbursement Date
On or after Oct. 1, 2018, and before Oct. 1, 2019
On or after Oct. 1, 2019, and before Oct. 1, 2020
For questions or concerns related to credit status and denied credit decision appeals, obligations and responsibilities of Direct PLUS Loan endorsers, and all actions performed on the studentaid.gov, website borrowers must contact the Student Loan Support Center at 1-800-557-7394.
- The student must be enrolled at least half-time (six hours or more).
- The student must maintain satisfactory academic progress as defined by the USC Aiken Satisfactory Academic Progress Policy.
- The student and borrower must not have defaulted on or owe a refund to any previous student aid program.
- The student and borrower must be U.S. citizens, U.S. nationals or permanent residents.
- The borrower must be a parent of the dependent undergraduate student.