How to Apply for the Federal Direct Parent PLUS Loan
To be eligible for the Parent PLUS Loan, both your student and the parent borrower must fulfill certain requirements. Possessing a completed FAFSA on file is the first step. We can’t certify the Direct Parent PLUS loan until your student has been offered loan eligibility.
Your Student must:
- Meet Federal and Penn State Financial Aid Eligibility Requirements.
- Be a dependent (based on FAFSA data) undergraduate student
- Be enrolled in a degree-seeking program
- Be enrolled in at least 6 credits (half-time)
- Meet the minimum requirements for Satisfactory Academic Progress
You – the Parent Borrower must:
- Be the biological, adoptive, or step-parent of the student.
- Be a U.S. citizen or eligible non-citizen (permanent resident).
- Not be in default on repayment of federal aid. If you are currently in default, go here.
- Consent to, and pass a credit check by the U. S. Department of Education.
Determine the loan period for which you plan to apply. We advise you to apply for the fall/spring Loan term if your student intends to enroll for both the fall and spring semesters. The summer loan term cannot be combined with other terms.
The disbursement of a $10,000 fall/spring loan would be $5,000 for the fall semester and $5,000 for the spring semester if you select a fall/spring loan period. The loan amount will be divided equally between the two semesters.
There are four loan term periods at Penn State:
| Term | Period | Application Opens |
| Fall/Spring | August – May | June |
| Fall only | August – December | June |
| Spring only | January -May | October |
| Summer only | May – August | April |
| The fixed interest rate for loans first disbursed on or after July 1, 2022 | 7.54% |
| The fixed interest rate for loans first disbursed on or after July 1, 2023 | 8.05% |
| The origination fee for loans first disbursed on or after October 1, 2019 and prior to October 1, 2020 | 4.236% |
| The origination fee for loans first disbursed on or after October 1, 2020 and prior to October 1, 2024 | 4.228% |
Create a Student Budget
You can use a number of our tools to estimate the amount you will need to borrow for a Parent PLUS Loan:
Calculate the Loan Fee (Net vs. Gross) for 2022-23 or 2023-24
The total loan amount you wish to take out will be divided by 0. 9577. For instance, ask for a gross amount of $10,441 ($10,000/0) in order to receive a net amount of $10,000. 9577 = $10,441).
The Award Summary and Student Account Statement in LionPATH will show your authorized and accepted Direct PLUS loan, but the loan amounts will differ.
The gross amount of the loan is shown on the Award Summary. The Tuition Bill, on the other hand, displays the net amount following the deduction of loan origination fees.
Parents will need to apply for the Direct Parent PLUS Loan on studentaid.gov. Like the FAFSA, Direct Parent PLUS Loans must be requested each academic year.
You must log on to the studentloans. gov website with your own FSA ID. Prior to applying for the Direct Parent PLUS Loan, you must create an FSA ID if you are not the parent on the FAFSA.
Preview a read-only version of the Direct Parent PLUS application here.
When you submit your application, you will be informed whether your credit has been accepted or rejected.
Your employment status, debt-to-income ratio, and credit score are not taken into account; however, bad credit usually leads to a Direct PLUS loan denial.
For more information about adverse credit, visit studentaid.gov.
For more options, click this link if you are not approved for a Direct Parent PLUS loan.
In two to three business days, your application will be sent to us electronically if it has been granted credit. We will create the application and add the award to your student’s Aid Summary once the application has been loaded into LionPATH. Processing for the upcoming academic year will begin in July. Spring-only in October, and Summer in April.
The application will NOT process if your student:
- Is listed as the borrower of the loan
- Is not enrolled in a degree-seeking program
- Does not have a FAFSA on file for Penn State
- has not received their eligibility for federal aid (either because we have not begun to award or because your student is not eligible for federal aid).
First-time parent borrowers are required to Complete a Master Promissory Note (MPN) for the Direct Parent PLUS Loan at studentaid.gov. The Master Promissory Note must be signed for the loan to appear as a credit on the bill and disburse to the student account.
Typically, you will only have to sign an MPN once while your student is enrolled in college. It is not necessary for you to sign a new MPN for each application you submit, unless it is rejected and then approved with an endorser afterwards.
You can preview a copy of the PLUS MPN. Visit Studentaid.gov or for more information and/or to complete the PLUS MPN (FSAID and log on required).
If you experience any technical issues signing the MPN, please get in touch with the U S. Department of Educations Student Loan Support Center at 800-557-7394.
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Information for
FAQ
How do you qualify for a parent PLUS loan?
You must meet the general eligibility requirements for federal student aid (which the child must also meet) and be a biological or adoptive parent (or, in some cases, a stepparent) in order to be eligible for a Direct PLUS Loan for parents. You cannot have a bad credit history.
Is there a deadline to apply for parent PLUS loan?
When is the deadline for Parent PLUS loan applications? The Parent PLUS loan application deadline is June 30th, which is also the date that the FAFSA closes.
How long does it take for parent PLUS loan to be approved?
How long does it take to process a Federal Direct Parent PLUS loan? Processing times vary from two to four weeks, depending on the season.
Are parent PLUS loans difficult to get?
Obtaining a parent PLUS loan does not require a minimum credit score. Unlike private parent student loans, which use your credit score to determine your eligibility and the interest rate you will pay, federal loans do not use this information. However, parent PLUS loans do require a credit check, and you will not be eligible if your credit history is unfavorable.
Read More :
https://studentaid.gov/plus-app/parent/landing
https://studentaid.gov/plus-app/