How does my parent apply for a Federal Direct (PLUS) loan?
Unlike the Federal Direct Student loan, your parent must be credit worthy in order to receive a PLUS loan. The Federal Direct PLUS Loan program helps parents pay the educational expenses of a dependent undergraduate student enrolled at least half time. A valid FAFSA must be on file in order to determine PLUS loan eligibility. The maximum a parent may borrow each year is limited to the difference between the students’ cost of attendance and other financial aid. The current PLUS loan is a fixed rate of 7.9%. Each loan also carries a fee up to 4% and an up front rebate of 1.5%. These fees are deducted from disbursements sent to the college.
