Parents of dependent students who receive a parent PLUS loan are subject to the terms and conditions, along with the borrower’s rights and responsibilities disclosed on the Federal Direct PLUS Loan Master Promissory Note (MPN).įor eligibility and application information for a Federal Direct PLUS loan for a parent of a dependent student, please visit the federal StudentAid PLUS Loan information page. Generally, the same deferment or forbearance provisions that apply to Subsidized/Unsubsidized loans also apply to PLUS loans. Interest will accrue on the loan during the deferment. The parent borrower has the option to begin repayment either within 60 days from the date the loan is fully disbursed or may request to defer repayment while the dependent student is enrolled at an eligible institution and for an additional six months after the date the student ceases to be enrolled on at least half-time basis. Interest is charged on the loan from the date first disbursement is made until the loan is paid in full. The yearly limit is equal to the cost of attendance (COA) minus any other financial aid received. This loan is based on credit worthiness as determined by the U.S. The application process is completed through the Federal Direct Loan Program. The application process includes completion and submission of a PLUS Loan application by your parents and completion and submission of the Free Application for Federal Student Aid (FAFSA) by the family. If you are a dependent undergraduate student, your parents may apply for a parent PLUS loan to assist with your educational expenses. Students who receive a graduate PLUS loan are subject to the terms and conditions, along with the borrower’s rights and responsibilities disclosed on the Federal Direct PLUS Loan Master Promissory Note (MPN).įor eligibility and application information for a Federal Direct PLUS loan for a graduate student, please visit the federal StudentAid PLUS Loan information page. The graduate PLUS loan will be placed into deferment while a graduate student is enrolled and for an additional six months after the date the student ceases to be enrolled on at least half-time basis. Graduate PLUS loans are made to graduate or professional students to help pay for education expenses. Graduate students can borrow an amount up to the cost of attendance (COA) minus other estimated financial assistance.Īpplicants are required to complete the Free Application for Federal Student Aid (FAFSA) and are given an opportunity to request the maximum eligibility under the Direct Unsubsidized Loan Program before applying for a graduate Direct PLUS loan.

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