Offers flexible loan limits and a fixed interest rate. Eligibility is determined by the applicants credit history.
The Direct Parent PLUS Loan is a federal loan designed for parents of dependent undergraduate students. It offers flexible loan limits and a fixed interest rate for each academic year. Eligibility for this loan is determined based on the applicant's credit history.
Both your student and the parent borrower must meet specific eligibility requirements in order for you to qualify for the Parent PLUS Loan. The first step is to have a completed FAFSA on file. Your student must have been offered their loan eligibility first, before we can certify the Direct Parent PLUS loan.
Your Student must:
You - the Parent Borrower must:
Determine the loan period for which you plan to apply. If your student is planning to be enrolled for both fall and spring semesters, we recommend that you apply for the fall/spring Loan term. The summer loan term cannot be combined with other terms.
If you choose a fall/spring loan period, the amount of the loan will be split equally between the two semesters; the disbursement of a $10,000 fall/spring loan would be $5,000 for the fall semester and $5,000 for the spring semester.
The loan origination fee is a fee charged by your lender upon entering into a loan agreement to cover the cost of processing the loan. This agreement will be made when you sign the Master Promissory Note (MPN) at studentaid.gov. The fee will be taken out of the gross amount of your loan when the funds are disbursed to the school.
Divide the total loan amount you want to borrow by 0.9577. For example, to receive a net amount of $10,000, request a gross amount of $10,441 ($10,000/0.9577 = $10,441)
Your approved and accepted Direct PLUS loan will appear on both the Financial Aid Offer and Student Account Statement in LionPATH, however, the loan amounts will be different.
The loan amount on the Financial Aid Offer is the gross amount. In contrast, the Tuition Bill shows the net amount after the loan origination fees have been deducted.
Parents will need to apply for the Direct Parent PLUS Loan on studentaid.gov. Like the FAFSA, Direct Parent PLUS Loans must be requested each academic year.
You must log on to the studentloans.gov website with your own FSA ID. If you are not the parent on the FAFSA and do not have an FSA ID, you will need to create one before applying for the Direct Parent PLUS Loan.
Preview a read-only version of the Direct Parent PLUS application here.
You will be notified at the time that you submit your application if your credit has been approved or denied.
Your debt-to-income ratio, credit score, and employment status are not taken into consideration; however, adverse credit typically results in a Direct PLUS loan denial.
For more information about adverse credit, visit studentaid.gov.
If your application has been credit approved, your application will be sent electronically to us in 2-3 business days. Once the application has been loaded into LionPATH, we will create the application and add the loan offer to your student's Financial Aid Offer. Processing for the upcoming academic year will begin in July. Spring-only in October, and Summer in April.
The application will NOT process if your student:
First-time parent borrowers are required to Complete a Master Promissory Note (MPN) for the Direct Parent PLUS Loan at studentaid.gov. The Master Promissory Note must be signed for the loan to appear as a credit on the bill and disburse to the student account.
In most cases, you will only need to sign an MPN once during your student's college career. You do not need to sign a new MPN for every application submitted; unless your application is denied and then later approved with an endorser.
You can preview a copy of the PLUS MPN. Visit Studentaid.gov or for more information and/or to complete the PLUS MPN (FSAID and log on required).
If you have technical difficulty signing the MPN, please contact the U.S. Department of Education's Student Loan Support Center at 800-557-7394.
If your Direct Parent PLUS request is denied, you can obtain an endorser. In some cases, you can document extenuating circumstances with the U.S. Department of Education.
The U.S. Department of Education will provide you with a credit appeal and endorser information. Contact the U.S. Department of Education Student Loan Support Center at 800-557-7394 for more information regarding your denial, appeal, or endorser process.
If you are approved with an endorser (co-signer), you will need to sign a new Master Promissory Note (MPN) for each endorsed loan.
If you intend to endorse multiple Direct PLUS applications please note the following:
If you have technical difficulty signing the MPN, please contact the U.S. Department of Education's Student Loan Support Center at 800-557-7394.
Direct PLUS Counseling is required for all borrowers who are initially denied due to adverse credit, but later approved with an endorser or through a credit appeal.
You must complete the required PLUS Credit Counseling on studentaid.gov in order for the loan to disburse. This counseling requirement takes approximately 15 – 20 minutes to complete.
If you are credit denied, we will review your student's eligibility for additional Direct Unsubsidized loan funds. However, if you, another parent borrower, or credit-worthy endorser are later approved through the appeal process, your student will no longer be eligible for any un-disbursed additional Direct Unsubsidized loan funds.
Your repayment period begins the date the loan is fully disbursed. The first payment is due within 60 days.
Your federal loan servicer will provide information about repayment and confirm the date repayment begins. Repayments are made to the federal loan servicer. Borrowers generally have from 10 to 25 years to repay the Direct Parent PLUS Loan.
Please note that Direct Parent PLUS Loan borrowers are only eligible for an income driven repayment plan if their loan debt has been consolidated.
The Student Loans online repay tool will guide you to the repayment option that meets your needs.
Deferment allows you to delay loan repayment until after your student is no longer enrolled at least half-time (6 credits). You also have the option to request an additional six-month post-enrollment deferment after your student drops below half-time, graduates, or withdraws. You must request separate deferments for each loan period through your federal loan servicer.
Upon disbursement,you will receive repayment and deferment information from your loan servicer and may need to provide a copy of your student’s enrollment verification along with the in-school deferment form.
If you are not a U.S. Citizen or Eligible Non-Citizen, you are NOT eligible to apply for the Direct Parent PLUS loan. However, we can offer your student additional Direct Unsubsidized Loan once we certify your status. To initiate the process, please contact us.
*Please note that if either parent on the FAFSA is a U.S. Citizen or Eligible Non-Citizen, the eligible parent must complete the Direct PLUS Loan application and receive a denial in order to be reviewed for additional Direct Unsubsidized Loan Eligibility.
To complete the confirmation process, you will need to submit a signed letter (that will be issued to you), a copy of your citizenship documentation and a social security card (if applicable).
Once we have reviewed your documentation, and determine that your student is eligible, we will offer the additional Direct Unsubsidized Loan. Your student can view the loan in their Financial Aid Offer, and accept, reduce, or decline the loan in LionPATH.
When The National Student Loan Data System (NSLDS) indicates that you are in DEFAULT on a federal loan, you cannot receive federal financial aid until you resolve the default. Once you can show that the default has been resolved, you can re-apply for the Direct PLUS loan.
The default may not show on your credit history when the credit check is performed, so in some cases, you may be preliminarily approved for the Direct PLUS Loan. However, once the school is notified that you have a federal loan that is in default, your Direct PLUS loan will be cancelled. In its place, we can offer the student an additional unsubsidized loan in the amount of $4,000 or $5,000 based on your student's grade-level.
Once you can show that your federal loan default has been cleared, then you can re-apply for the Direct PLUS loan. If approved, any additional Direct Unsubsidized Loan that has not been disbursed, will be cancelled.
Below is a list of acceptable documentation which you may submit to Penn State to document that your defaulted loan has been resolved:
All default resolution letters must be from the holder of the loan or from the Department of Education. Please call 1-800-621-3115 for assistance.
Although you can regain eligibility for all federal financial aid funds by making satisfactory repayment arrangements, the loan is still in default. After you make more payments, the loan may be rehabilitated and it will not be in default anymore.
For additional information about how to resolve a Federal Loan in default visit: