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Federal Direct Parent PLUS Loan Program


Applying for a Federal Direct Parent PLUS Loan:

The Federal Direct Parent Loan for Undergraduate Students, otherwise known as the PLUS Loan, is a popular option for families who wish to use a low-interest loan as a means of covering their student's college expenses. The Federal Direct PLUS Loan program can be used to supplement your student's aid awards, or it can be used solely to cover the full cost of education:

  • Parents must be creditworthy, but there are no income requirements placed on eligibility.
  • No collateral or cosigners are required.
  • Completion of the FASFA is required in order to apply for the PLUS Loan.
  • Loans are payable 60 days after the final disbursement of the loan and payable over 10 years.
  • Deferment of repayment is available upon request as long as the student is enrolled at least half-time.
  • The PLUS loan rate is fixed at 6.84% has a 4.292% origination fee.


Obtaining a PLUS Loan, Step-By-Step

  •  A parent can apply for a Federal Direct Parent PLUS Loan by visiting www.studentloans.gov.  On the main welcome page, select "Start PLUS Application Process." On the next page, under “Select the loan type,” choose “Parent PLUS.” The PLUS process will ask for information about the parent, allow a parent to indicate a loan amount and initiate a credit check.
  • The individual parent applying for the loan will also complete a Master Promissory Note (MPN) online at www.studentloans.gov The MPN can be completed as soon as the credit is approved. The request is not complete until Susquehanna have both the initial application and the Master Promissory Note on file. Unlike the Federal Direct Subsidized and Unsubsidized Student Loans, the Direct Parent PLUS loan request and credit check must be completed annually for each loan.



PLUS Loan Sample Repayment Schedule

Based on 6.84% or 7.9% (interest paid is based on the standard repayment schedule)

Amount Borrowed

6.84% Payment Amount

7.21% Payment Amount

$5,500 $63 $64
$8,000 $92 $94
$10,000 $115 $117
$12,000 $138 $125
$16,000 $184 $188
$18,000 $207 $211
$20,000 $230 $234
$25,000 $288 $293
$30,000 $346 $352
$35,000 $403 $410


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