Federal Direct Parent PLUS Loan
The Federal Direct Parent Loan for undergraduate students (PLUS) lets parents borrow money to pay for the educational expense of their dependent student. A parent PLUS loan is in the parent’s name and the parent’s responsibility to pay back. The interest on a PLUS loan begins accruing when the loan is disbursed. There is an origination fee on any PLUS loan of 4.236% (subject to change). The origination fee is deducted from each disbursement.
The origination fee and current interest rate are provided in a disclosure statement each borrower receives after the first loan disbursement.
To be eligible to borrow a PLUS loan the following MUST be meet:
To apply for a PLUS Loan the following steps must be completed:
What if the PLUS loan is Denied?