Who is eligible to borrow a Federal Direct PLUS Loan on behalf of a dependent student?
To borrow a PLUS loan for a dependent student, the parent must be the student’s biological or adoptive mother or father. Both parents may get a PLUS loan as long as the total aid package does not exceed the student’s cost of attendance. A stepparent is also eligible to borrow a PLUS loan if his/her income and assets were listed on the FAFSA. A legal guardian or grandparent is not eligible to borrow a Federal Direct PLUS Loan. The parent borrower will undergo a credit check with the U.S. Department of Education. Parents with adverse credit, a defaulted Federal student loan, or who owe an overpayment on a Federal Student Aid grant are not eligible. You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within the last five years, you have defaulted on a federal student loan, or have had a bankruptcy discharge, foreclosure, repossession, tax lien, or wage garnishment.
