Parent Loans for Undergraduate Students (PLUS)
Direct PLUS Loans are offered by the Department of Education to parents of dependent undergraduate students to assist in meeting education costs. Eligible parents may borrow the difference between the Cost of Attendance and other financial assistance the student is eligible to receive.
Parent Eligibility Requirements for a Direct PLUS Loan
You must be the biological or adoptive parent or step-parent of a dependent undergraduate student who is enrolled at least half-time (6 or more semester credit hours) at a school that participates in the Direct Loan Program.
For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, has no legal dependents, or is not a veteran at the time the Free Application for Federal Student Aid (FAFSA) is submitted.
To qualify for a Direct PLUS loan, a student must:
- Have completed the FAFSA
- Be enrolled at least 6 semester hours (half-time)
- Meet requirements of Satisfactory Academic Progress
- Be a biological or adoptive parent or step-parent
- Have a good credit history
- Not have defaulted on any previous student or parent loans
- Be a U.S. citizen or an eligible non-citizen
How to Apply
To take out a Direct PLUS Loan, parents must:
- Login to the Federal Student Aid website
- Sign in using his or her own FSA ID
- Choose Request Direct PLUS Loan
- Select Parents PLUS
- Follow all steps of the application and submit
Upon application, your approval status will be visible. If you are denied the Direct PLUS loan, you may still borrow a PLUS Loan if you locate an endorser who is creditworthy. An endorser is someone who agrees to repay the loan if you do not. In some cases, you may also be able to obtain a Direct PLUS Loan if you document that there are extenuating circumstances related to your adverse credit history.
Next, you’ll complete a master promissory note (MPN) online. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s). To complete an MPN online; you will be required to use your Department of Education-issued FSA ID.
If you apply for a Direct PLUS Loan but you are unable to receive the loan, your dependent may be eligible to receive additional Direct, Unsubsidized Loan funds. In this case, the student would need to complete and submit the Revision Request in myGateway.
Steps to Submit a Loan Revision Request:
- Log into myGateway
- Select the student tab and choose DuckTrax
- Choose online services & financial aid
- Select financial aid
- Choose Loan Revision Request
- Fill out form & submit
Interest Rate and Loan Charges
The Interest rate for Direct PLUS Loans are fixed. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan’s first disbursement.
In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans.
Direct PLUS Loan Interest Rates and Origination Fee
|Direct PLUS (Graduate Students/Parents) Interest Rate||7.54 %|
|Origination Fee||4.228 %|
Rates apply to loans first disbursed on or after July 1, 2022 and before July 1, 2023.
Federal Direct PLUS Loan Repayment
Repayment can be managed on the website of your loan servicer, which will be assigned to you by the U.S. Department of Education. While the interest rate on the loan is fixed, interest starts accruing on the loan at the time of disbursement to Tarleton State University. Payments can be deferred until after graduation, as long as your student is enrolled at least half-time. Accrued interest can either be paid quarterly while you are in school or capitalized (added) to the loan when you enter repayment. You will accrue future interest based on the principle balance while in repayment. The U.S. Department of Education has a Loan Repayment Estimator you can use to help estimate your loan repayment options.
The Department of Education deducts the origination fee before you receive any loan money, so the loan amount you receive will be less than the amount you will have to repay.