Direct Parent PLUS Loan
A parent PLUS loan allows a parent to borrow an amount up to the student’s cost of attendance minus all financial aid the student may receive for the enrollment period.
Parent PLUS Loan
What is the Processing Fee?
The processing fee is a fee the lender charges up-front for providing you the loan. The processing fee for a loan disbursed:
- Between October 1, 2019 and September 30, 2020 is 4.236%
- Between October 1, 2018 and September 30, 2019 is 4.248% .
What is the Interest Rate?
The fixed interest rate is 7.08% for a loan disbursed between July 1, 2019 and June 30, 2020.
*Interest begins accruing at the time of the first disbursement.
When do I have to Repay?
- Repayment begins within 60 days after the final disbursement for the loan period.
- Deferment may be an option.
What is required to receive a Parent PLUS Loan?
- Complete the FAFSA.
- Log into StudentLoan.gov with your FSA ID.
- Select "Apply for Direct PLUS Loan" then choose "Direct PLUS Loan Application for Parent".
- Complete and submit the Direct PLUS Loan Application for Parent.
- Complete the Parent PLUS Master Promissory Note (if the application is approved). * Under most circumstances, the MPN needs to be completed once every 10 years.
- Once our office has received and awarded your approved loan, you can view the award on through you Parent Center in UAConnect.
A parent PLUS loan application is specific to a borrower, a dependent, an aid year, and a loan. If a semester application was completed, it is specific to that borrower, that dependent, that semester, that borrow, and that loan.
Please contact us if you have any questions on multiple dependents and/or multiple borrowers.
Credit checks are valid for 180 days from the time the application is submitted for that specific loan. This is subject to change according to federal regulations. Thus, a good rule of thumb is to apply 75 days or less before the year begins. If the approval date is expired, the loan funds will not disburse.
What if my application is denied?
An appeal or endorser may be an option if a loan is denied. If an appeal or endorser is approved for the specific loan application, an MPN and PLUS Counseling is required to receive the loan funds. Please note: an MPN and Entrance Counseling is required for each loan that is approved by appeal or endorser.