Federal Direct Parent Loan (PLUS) Description
The Parent Loan for Undergraduate Students (PLUS) is a federal direct loan that parents apply for on behalf of their dependent undergraduate student(s). It enables parents with good credit history to assist their children who are enrolled at least half time (6 credits per semester) at a post-secondary school. The loan’s interest rate is fixed at 7.9%. Payment begins 60 days after the final disbursement.
For your convenience, also see the following links for additional information.
PLUS brochure
Parent PLUS Application Process
Options if a Parent is Denied the PLUS
How Much Can I Borrow?
Parent PLUS Application Process
- Complete the appropriate form for each year.
- Parent Loan Application It can be printed from here or can be obtained from the Office of Financial Aid. Be sure to review the section on the application that releases PLUS funds.
- Send the completed application to the Office of Financial Aid. Upon approval of the federal credit check, you will be notified of the outcome by the federal processor.
- If the Federal Direct PLUS is approved, a Master Promissory Note (MPN) must be signed. This can be done with a paper note or an electronic note.
- In order to complete the electronic MPN, a federal PIN number is required. The federal PIN is the same as you used to sign your students online FAFSA. If you do not already have a PIN, you can go to www.pin.ed.gov. You should receive the requested information within two days via e-mail.
- Using the PIN number you have received, go to the MPN web site and read the instructions. Then, click on the blue “Proceed to PIN Site Registration” button and enter your information. Once the note has been completed, our office will retrieve the information and continue processing the loan. This can be done at any time.
- If you do not complete an electronic MPN, a paper MPN will be sent to you. Complete the MPN, except section B, school information, and return the original to the Office of Financial Aid.
Loan proceeds are split between two semesters. The first half will be used to pay student expenses for the fall semester. The second half will pay expenses for the spring semester.
How Much Can I Borrow?
A common question for parents who wish to pursue a Federal Direct PLUS is, “how much can I borrow?” To answer this question, a brief description of how we determine eligibility will help.
Students who have been awarded financial aid also have a budget as part of their award package. The student budget or cost of attendance represents a ceiling or cap in the total amount of financial aid our office can provide. Parents may borrow PLUS funds up to a student’s budget minus all other financial aid and resources.
See example below:
$13,300.....Cost of attendance (this figure is for illustration purposes only)
- $8,025....Total financial aid: offered in other loans, grants, Work-Study, etc.
- $1,000.....Resources: such as scholarships,tuition/fee waivers, Veteran’s
Benefits, Voc Rehab
$4,275.....Remaining PLUS eligibility:
We encourage all parent Federal Direct PLUS borrowers to review costs with their students and to borrow only that amount that will help ensure their success. If you have any questions about the PLUS or other financial aid matters, please call us in Pocatello at (208) 282-2756 or in Idaho Falls at (208) 282-4407.
Options if a Parent is Denied the PLUS
- If a parent is denied for the Federal Direct PLUS, the parent may re-apply using a credit-worthy co-signer. The Direct Loan Servicer will send you an information sheet and an Endorser Addendum to complete the co-signer process.
- Parents may appeal a Federal Direct PLUS loan denial by contacting the credit bureau reported on your federal denial letter. This letter will provide contact information as well as a specific reject code to assist you in the appeal process
- If the parent does not re-apply with a co-signer, it is possible for the student to apply for additional Federal Direct Unsubsidized Loan instead. The following Direct Unsubsidized Loan limits may be added to the student borrower’s combined Direct Subsidized and Unsubsidized loan limits:
- Up to $4000 for a first or second year student.
- Up to $5000 for a third, fourth, or fifth year undergraduate.
If you wish to pursue the Unsubsidized Direct loan, please complete the Dependent Student Request for Unsubsidized Loan and forward it to the Office of Financial Aid.