The Federal Parent Loan for Undergraduate Students (PLUS) is a credit-based loan available to parents of undergraduate students. The loan is to be used to pay for tuition, fees, room and board, and other school charges. We encourage families to first exhaust students’ Direct Loan eligibility before borrowing a parent loan. We also advise families to only borrow the minimum needed to help pay for school. Parents must pass a credit check in order to obtain a Parent PLUS loan.
Parent PLUS Loan Quick Facts
Credit Check: Parents must pass a credit check to receive a federal parent loan. If a parent’s credit is denied, the parent can appeal the decision or secure a creditworthy endorser to cosign the loan. Otherwise, the school will be notified of the denial, and the student will be eligible for limited additional unsubsidized Stafford Loan funds.
Interest Rates and Fees: Interest rates are fixed at 5.3 percent. The government deducts a 4.236 percent fee from the loan amount up front.
Repayment: Parents may choose to begin repaying the loan 60 days after the loan is fully disbursed or six months after the student graduates from college or ceases to be enrolled at least half-time.
Refunds: Loan funds are applied to the student’s account, and any refund generated after the student’s balance is paid will be sent to either the parent or the student, depending upon what the parent indicates on the PLUS application.
Student Enrollment: Students must be enrolled at least half-time (6 credit hours) in order to receive federal parent loan funds.
- Visit StudentLoans.gov. Applicants should make sure they have the names, addresses, and phone numbers of two references and their employer before they begin.
- Click the LOG IN button in the top right-hand side of the screen.
- Log in with parent’s FSA ID. If the applicant can’t remember their FSA ID, visit fsaid.ed.gov and select “Edit My FSA ID”, then select Forgot My Username or Forgot My Password.
- Click the “apply for aid” drop down menu, followed by Apply for a PLUS Loan.
- Select the second option: Direct PLUS Loan Application for Parents and click Start.
- Register your student by entering his or her information.
- Enter an amount you would like to borrow. If you leave the amount blank, Thomas More’s policy is to certify the loan for the amount that exactly covers the student’s charges. If you would like to borrow more or less than the suggested amount, please indicate the new amount on your application.
- Check the box to authorize a credit check.
- If you are not approved, you may secure a creditworthy endorser to cosign for your PLUS loan. If you do not secure a creditworthy endorser, your student will be eligible for an additional $4,000 or $5,000 in unsubsidized funds. Please have your student contact the Office of Financial Aid if he/she would like to borrow these funds.
- If your credit is approved, click on the student’s name to complete the Master Promissory Note.
- Enter your information and the student’s information.
- Enter your information and sign electronically. View the HTML Version of your MPN, then click Continue to submit.