What is a Federal Parent PLUS Loan?
The Federal PLUS Loan is part of the Federal Family Education Loan Program (FFELP). It is designed to allow parents of undergraduate dependent students to borrow for their children’s education. Income and assets are not a factor. However, eligibility for the PLUS Loan is based on the parent’s credit history.
A Federal Direct Parent PLUS Loan is a low-interest, unsubsidized federal loan that allows a parent of a dependent student to assist in paying for the student’s college education. If a student accepts the offer of a Parent PLUS Loan on an award notification and the parent wants to borrow the loan, the parent must apply for the Parent PLUS Loan. If a parent applies for the loan and is approved to borrow, then the parent must complete a master promissory note (MPN). The Office of Student Financial Assistance will communicate to the student of the parent how the parent must complete the MPN.
Related Questions
- What is the aggregate loan limit for a dependent undergraduate student whose parent has been denied a Federal PLUS Loan but who is eligible for an additional unsubsidized Federal Stafford Loan?
- How do I apply as a parent for a Federal Direct PLUS Loan?
- How does my parent apply for a Federal Direct (PLUS) loan?
