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About Federal Direct PLUS Loan

If you have a dependent in college, you may be eligible for college loans through the Federal Direct Parent PLUS Program (PLUS). Before you apply for PLUS, examine your child’s eligibility for grants, work-study programs or loans with competitive interest rates.

How Much Can You Borrow?

Up to the student's cost of attendance, minus any other financial aid. There is no limit on the aggregate amount.

What Do These Loans Cost?

The fixed interest rate on PLUS Loans made for the 2013 - 2014 academic year is 6.41%. Each loan also carries an origination fee of up to 4%.

Sample Repayment Schedule - 6.41%
Loan Amount
# of Monthly Payments
Monthly Payment
Total Paid

Who Is Eligible?

All parents and some stepparents are eligible to apply for a PLUS Loan regardless of income, as long as they have a good credit history. Additionally:

How Do I Apply?

Apply for the PLUS loan through the school your dependent is attending.

How Are the Funds Disbursed?

Your dependent's school normally draws the funds from the U.S. Treasury and applies them to your child’s account for education expenses (tuition, room and board, etc.). Then the college sends any remaining funds directly to you — or, with your permission, adds them to your child’s school account.

When Do I Start Repayment?

The first payment is due within 60 days from when the loan is fully disbursed (when the school makes the final disbursement). Interest, however, begins accruing on the day of the first disbursement. While you can capitalize the interest — that is, add it to the principal — you should pay it whenever possible. Parents can choose to defer repayment until six months after the student ceases to be enrolled at least half time. You can also include PLUS Loans in the Federal Consolidation Loan Program. Discuss loan consolidation with your lender.

Deferments to delay repayment are available to eligible borrowers through the U.S. Department of Education's Direct Loan Servicing Center or their loan servicer.