The Federal Direct Parent Loan for Undergraduate Students program, referred to as the PLUS, is a non-need based loan for parents of dependent students. Loan eligibility amount is limited by the institutional budget minus all other financial aid.

Effective July 1, 2022, Federal Direct PLUS loans for the 2022-2023 academic year will have a 7.54% interest rate fixed for the life of the loan with a 4.228% up-front loan fee deducted from each disbursement. Interest rates on future year Federal Direct PLUS loans will be indexed to the 10-year U.S. Treasury Note rate. Review the current Federal Direct Loan interest rate table below.

Repayment begins 60 days after the loan is fully disbursed (unless approved for a deferment) and cannot be transferred into the student’s name. The parent borrower must repay the loan. Students are required to meet Satisfactory Academic Progress and maintain half-time enrollment.

Obtaining a PLUS Loan

After completing the FAFSA, the student will be notified when their award notification is available in e-Services. If a parent wants to apply for the Parent PLUS Loan, they can complete the online application at studentaid.gov and complete the loan agreement for a PLUS loan (MPN). You will need to use the FSA ID and social security number of the parent applying for the loan to sign in.

A credit check will be conducted prior to approval of the loan. If the parent’s loan is denied, the student will be eligible for additional unsubsidized direct loan. An email will be sent to the student’s BSU email address notifying them of a revised award notification available through their e-Services account.

Once a parent has completed the loan agreement for a PLUS loan (MPN) for that individual student, all subsequent PLUS loans will only require the online Direct PLUS application.

Receiving PLUS Funds

PLUS loan funds are disbursed approximately the third week of each semester and credited to the student’s account. Any remaining balance will be issued according to the parent’s selection on the online Direct PLUS application (remaining funds can go to the parent or the student).

Repayment

There is no grace period for a Direct PLUS Loan. The repayment period begins 60 days after the school makes the last disbursement on the loan. You (the parent) may contact the loan servicer to request a deferment (postponement of payment) while you or the student (your son/daughter) are enrolled at least half-time and for an additional 6 months after the student ceases to be enrolled at least half-time.

If the loan is deferred, interest will accrue on the loan during the deferment period. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due. You can choose to repay your PLUS Loan using the standard, extended, or graduated repayment plan.

Yes! The Federal Direct PLUS Loan for Graduate Students, referred to as the Grad PLUS, is a non-need based loan for graduate level students. Loan eligibility is limited by the institutional budget minus all other financial aid.

Effective July 1, 2022, Federal Direct PLUS loans for the 2022-2023 academic year will have a 6.54% interest rate fixed for the life of the loan with a 1.057% up-front loan fee deducted from each disbursement. Interest rates on future year Federal Direct PLUS loans will be indexed to the 10-year U.S. Treasury Note rate. Review the current Federal Direct Loan interest rate table below.

Students are required to meet Satisfactory Academic Progress and maintain half-time enrollment.

Obtaining a Grad PLUS Loan

After completing the FAFSA, the student will be notified when their award notification is available to view in e-Services. If a student would like to pursue additional loan funds in the Grad PLUS loan, they can complete the online application for a Grad PLUS loan at studentaid.gov.

A credit check will be conducted prior to approval of the loan. If a student has an adverse credit history the loan application will be denied. The student may still be approved through one of these options; try to obtain an endorser who does not have an adverse credit history or document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to the adverse credit history.

If the loan is approved, the first time a student borrows a Grad PLUS loan they are required to sign a Loan Agreement for a PLUS Loan (MPN) at studentaid.gov. Once a student has completed the Loan Agreement for a PLUS Loan (MPN), all subsequent Grad PLUS loans will only require the online Direct PLUS application.

Repayment

Borrowing student loans to help fund your higher education expenses is an investment in your future that must be repaid. Failing to repay your student loans can have serious financial consequences; however, repaying your student loans with on-time monthly payments can help establish a positive credit history.

To access your Federal student loan information at any time during your college education, visit studentaid.gov and log in with your FSA ID. You may also access this information prior to repayment and any time after your Federal loans have been disbursed to have access to your loan servicer’s contact information and view a listing of all your Federal student loans. If you have private or state student loans, you may also want to obtain a free credit report that will provide an entire student loan history at AnnualCreditReport.com.

The repayment period begins 6 months after a student graduates, leaves school or drops to less-than-half time. During any period when not required to make payments, interest will accrue on the Grad PLUS Loan. If accrued interest is not paid, the interest will be capitalized (added to the loan principal balance) at the time repayment begins. A Grad PLUS Loan can be repaid using the standard, extended, graduated, pay as you earn, revised pay as you earn, income-based and income-contingent repayment plans. Students will work with their loan servicer regarding repayment. If there are any difficulties making payments, students should contact their servicer immediately to receive assistance. Servicers can help borrowers change their repayment plans or utilize deferment or forbearance options.

A Loan Repayment Estimator will help you to determine how much interest you will pay and the estimated amount of your monthly payments based upon your total loan indebtedness. Depending upon the type of loans you have borrowed, you may have choices to make concerning the best repayment plan for you. You may also elect to consolidate multiple Federal loans into one new consolidated loan to reduce your monthly payments. For the most comprehensive source of information concerning repayment plans, consolidation, deferment or forbearance, forgiveness, cancellation and discharge of your Federal student loans, see the “How to Repay Your Loans” section of the Federal Student Aid website.