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Direct Parent PLUS Loans: What You Should Know

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Direct Parent PLUS Loans are unsubsidized loans available to parents of dependent students to help pay for educational expenses up to the cost of attendance minus all other financial assistance. Parent refers to the dependent student's natural mother or father, custodial stepparent, or adoptive parent.

The Direct PLUS Loan Application/Pre-Approval is available online or may be picked up in the Office of Student Financial Assistance.

Direct PLUS Loans will be certified by USI for the maximum amount for which the borrower is eligible or the amount requested, whichever is less. Annual loan limits are adjusted for enrollment status and unmet financial aid budget costs. Both parents may borrow individually but the total of the two loans may not exceed the annual loan limit.

Students must be enrolled in at least 6 credit hours (half-time status) at the time of disbursement.

Credit decisions are valid for 90 days. It is recommended credit checks be conducted no sooner than 90 days prior to the student's first day of enrollment. Credit denied applicants who would like to attempt to resolve the denial of the Direct PLUS Loan can contact DL Applicant Services by 800/557-7394. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have such a history. An endorser is a cosigner, or someone who agrees to repay the loan if you do not. The endorser may not be the student on whose behalf a parent obtains a PLUS Loan. To endorse a Direct PLUS Loan visit https://studentloans.gov/myDirectLoan/index.action.

If a parent is denied, the student may be eligible for additional Direct Unsubsidized Loan funds.

If any parent is credit approved or a creditworthy endorser is obtained, additional Direct Unsubsidized Loan funds cannot be awarded.

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Year	Rate
7-1-11 to 6-30-12	7.9%

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Notes: Under current law (March 2006), the maximum interest rate is 9 percent. Loans certified after June 30, 2006 have a fixed rather than a variable interest rate.

Repayment of Direct PLUS Loans begins within 60 days of the second disbursement. Typically, a loan for the academic year goes into repayment in February (during the student's second semester).

Your monthly payment amount on a Direct PLUS Loan will vary depending on the repayment plan you choose and how much you borrowed. To see sample repayment amounts and terms, use the Direct Loan Program's Repayment Calculator.

For Direct PLUS Loans that are first disbursed on or after July 1, 2008, parent borrowers have the option of deferring their Direct PLUS Loan. For information regarding eligibility or to request a deferment, parent borrowers must call the Direct Loan Servicing Center (DLSC) at 800/848-0979.

The U.S. Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each disbursement of your loan.