About Federal Direct PLUS Loans

The U.S. Department of Education makes Federal Direct PLUS Loans, commonly referred to as Parent PLUS Loans, to eligible parents. The U.S. Department of Education is the lender. The maximum PLUS loan that can be received is the cost of attendance minus any other financial assistance that is received. Borrowers must not have an adverse credit history.

Eligibility Criteria

To receive a parent PLUS Loan, the following must apply:

1. Be the biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student enrolled at least half-time (at least 6 credits for undergraduates)
2. Have no adverse credit history (unless the parent meets certain additional requirements); and
3. Meet the general eligibility requirements for federal student aid.
4. A credit check will be performed during the application process.
   1. Parents who have an adverse credit history may still receive a parent PLUS loan through one of these two options:
      1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the parent PLUS loan if the parent does not repay it.
      2. Providing the U.S. Department of Education documentation that there are extenuating circumstances related to the parent’s adverse credit history.
   2. With either loan option 1 or option 2, a parent must complete credit counseling for parent PLUS loan borrowers.
   3. Credit checks are valid for 180 days from the approval date. If an endorser was used and a change in the loan amount is needed to increase the loan, a new credit check will be required.

Required Steps

Parents must complete the following steps in order to receive their Federal Direct Loans

1. Complete Entrance Counseling through Federal Student Aid only if credit counseling is needed. Entrance counseling ensures students understand the terms and conditions of their loans.
2. Complete the Master Promissory Note (MPN) through Federal Student Aid which is a legal document in which a parent promises to repay their loans and any accrued interest and fees to the U.S. Department of Education.