Federal Direct PLUS Loans (FDPL)

Federal Direct PLUS (Parents’ Loans for Undergraduates) Loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. PLUS loans are fixed-rate, non-need based loans paid over a ten year period. However, more than one PLUS loan may be consolidated into one loan and repaid over a period of up to 20 years.

Interest Rate

The Direct PLUS loan interest rate is fixed.

Loan Origination Fees

The loan origination fee for all Direct PLUS (Parent Loans for Undergraduate Students) loans are deducted proportionately from each loan disbursement. You are responsible for repaying the entire amount you borrowed, and not just the amount you received in loan disbursements.

Loan Limits

The maximum PLUS loan amount you can borrow is the total cost of attendance (COA determined by the school) minus any other financial assistance received.

If the COA at a college was $45,000 and the amount of financial aid offered was $17,000, the parents would be eligible for a $28,000 PLUS loan. But if the student was offered no financial aid because the student demonstrated no financial need, the parents would be eligible for a $45,000 PLUS loan.

The parent or graduate/professional student must file the FAFSA financial aid application form in order to qualify to receive the loan.

The PLUS loans are signature loans in the parents’ name, and if the parent (only one parent is needed to sign) dies or becomes disabled before the loan is repaid, the remaining loan principal balance is forgiven.

Parent Eligibility:

Parents need to be the student’s biological parent, adoptive parent, or the student’s stepparent. Your child must be a dependent student who is enrolled, at least half-time, at a school that participates in the Direct Loan Program. For financial aid purposes, a student is considered “dependent” if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. There will be a credit check. Parents and students need to be U.S. citizens.