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Federal Direct PLUS Loans for Parents

Federal Direct PLUS Loans are available to parents who want to borrow funds on behalf of their dependent child to pay education expenses for an undergraduate who is enrolled at least half-time basis (six or more credits each semester).

This loan cannot be used to pay past-due balances from a prior term and must be processed during a term the student is currently enrolled on a half-time basis. 

Borrowing is limited to the cost of attendance (as determined by St. Thomas) minus any other other financial aid the student is receiving, such as scholarships, grants and work-study funds.

Federal PLUS Loans for Parents vs. Private Loans

The decision of whether or not to borrow additional loans and which program to use is a difficult one for some families. Before making the decision, the Financial Aid Office encourages families to consider the differences between Federal PLUS and private loans.

How to Apply

Before applying for a Federal Direct PLUS Loan for Parents, you must be prepared to enter a loan amount on the application.

Direct PLUS Loan Details

  • Eligibility
  • Interest Rates and Fees
  • Credit Requirements
  • Repayment Terms
  • Eligibility

    Generally, parents are eligible if:

    • Their student has filed a Free Application for Federal Student Aid (FAFSA) for the academic year.
    • Their student is enrolled at least half-time (six or more credits each semester) in a degree program.
    • They are a natural parent, adoptive parent, or stepparent (if stepparent’s income and assets are considered on the FAFSA) of a dependent student.
    • They are a U.S. citizen or eligible noncitizen.
    • They have a valid Social Security number.
    • They are not in default on a federal student loan or owe money on a federal student grant.

    Interest Rates and Fees

    The interest rate on the Federal Direct PLUS loan is 9.08%. This is a fixed interest rate for loans disbursed on or after July 1, 2024 through June 30, 2025 and is effective for the life of the loan. Students are required to have a current on file before their parent may apply for a Federal Direct PLUS Loan.

    There is a federal loan origination fee of 4.228%. This fee is deducted from each disbursement.

    Credit Requirements

    A credit check is required and performed by the U.S. Department of Education.

    If you have recently frozen your credit report at Equifax, Transunion or Experian you may need to unfreeze your information before applying for a Direct PLUS Loan for Parents. A credit check is a required part of the Direct PLUS Loan Request or the Endorser Addendum process. As such, a borrower or endorser must remove any active credit freeze before starting the PLUS application or Endorser Addendum. Unfortunately, Federal Student Aid and the »Æ¹ÏÊÓƵ cannot unfreeze a credit report for the applicant.

    Please note that Federal Student Aid uses credit reports from two of the three main credit bureaus (currently Equifax and TransUnion). If your credit report is frozen at only one credit bureau, it is possible a credit determination could be made using the secondary credit bureau.

    Repayment Terms

    Repayment will begin within 60 days after disbursement of the full amount borrowed for an academic year. Interest accrues as soon as the first disbursement is made. There is no grace period for this loan; the parent borrower repays both principal and interest while their student is in school.

    The repayment term will be 10 to 30 years depending upon the repayment plan selected. Parents have the option to defer payments for PLUS loans originated after July 1, 2008 provided the designated student is enrolled at least half-time each semester (six or more credits), plus a six-month post-deferment period.

    Parents may request a deferment during the application process or contact the federal loan servicer of their PLUS loan.

    Eligibility

    Eligibility

    Generally, parents are eligible if:

    • Their student has filed a Free Application for Federal Student Aid (FAFSA) for the academic year.
    • Their student is enrolled at least half-time (six or more credits each semester) in a degree program.
    • They are a natural parent, adoptive parent, or stepparent (if stepparent’s income and assets are considered on the FAFSA) of a dependent student.
    • They are a U.S. citizen or eligible noncitizen.
    • They have a valid Social Security number.
    • They are not in default on a federal student loan or owe money on a federal student grant.

    Interest Rates and Fees

    Interest Rates and Fees

    The interest rate on the Federal Direct PLUS loan is 9.08%. This is a fixed interest rate for loans disbursed on or after July 1, 2024 through June 30, 2025 and is effective for the life of the loan. Students are required to have a current on file before their parent may apply for a Federal Direct PLUS Loan.

    There is a federal loan origination fee of 4.228%. This fee is deducted from each disbursement.

    Credit Requirements

    Credit Requirements

    A credit check is required and performed by the U.S. Department of Education.

    If you have recently frozen your credit report at Equifax, Transunion or Experian you may need to unfreeze your information before applying for a Direct PLUS Loan for Parents. A credit check is a required part of the Direct PLUS Loan Request or the Endorser Addendum process. As such, a borrower or endorser must remove any active credit freeze before starting the PLUS application or Endorser Addendum. Unfortunately, Federal Student Aid and the »Æ¹ÏÊÓƵ cannot unfreeze a credit report for the applicant.

    Please note that Federal Student Aid uses credit reports from two of the three main credit bureaus (currently Equifax and TransUnion). If your credit report is frozen at only one credit bureau, it is possible a credit determination could be made using the secondary credit bureau.

    Repayment Terms

    Repayment Terms

    Repayment will begin within 60 days after disbursement of the full amount borrowed for an academic year. Interest accrues as soon as the first disbursement is made. There is no grace period for this loan; the parent borrower repays both principal and interest while their student is in school.

    The repayment term will be 10 to 30 years depending upon the repayment plan selected. Parents have the option to defer payments for PLUS loans originated after July 1, 2008 provided the designated student is enrolled at least half-time each semester (six or more credits), plus a six-month post-deferment period.

    Parents may request a deferment during the application process or contact the federal loan servicer of their PLUS loan.