A Parent PLUS Loan is a Federal Direct Loan offered to parents of undergraduate students through the Department of Education. The PLUS loan is a credit-based loan that many parents borrow to help pay educational expenses. A parent is only eligible if the student is determined to be “dependent” as a result of their FAFSA. Starting July 1, 2026, new PLUS Loan borrowers have an annual limit of $20,000 per year on behalf of each student, with a lifetime limit of $65,000 on behalf of each student (from all parents’ combined borrowing). 

Parents of returning undergraduate students who borrowed a Direct Loan prior to July 1, 2026, and have remained continuously enrolled may borrow up to the cost of attendance after all other aid has been deducted.

The interest rate on the Parent PLUS Loan is determined annually by federal law. Similar to Stafford Loans for students, the PLUS loan also has an origination fee associated with it as a term and condition of borrowing the loan. Interest rates and origination fee details for the current academic year can be found on the Federal Student Aid website.

There is a separate application for the Parent PLUS Loan which initiates a credit check. Parents need to reapply each year to be awarded the loan. Parents must also complete a PLUS Loan Master Promissory Note, which remains valid for 10 years. Please see below for a list of eligibility requirements.

Eligibility Requirements

• You must be the biological, step (if included on the FAFSA) or adoptive parent of the dependent student
• You must meet the same citizenship criteria as the student for financial aid
• You must not have an adverse credit history
• The student must be meeting Satisfactory Academic Progress (SAP)
• A valid, current year FAFSA must be completed

If a parent is denied a PLUS loan, there are still options available to both the parent and the student. The parent may choose to appeal the decision of the denial that documents an extenuating circumstance through Direct Lending. You should then contact Direct Lending at 1-800-557-7394 for additional instructions on how to proceed including how to complete the additional loan counseling requirement online. A parent may also choose the option of pursuing an endorser for the loan. 

You will also want to contact Direct Lending for additional instructions on how to proceed. If the endorser is approved, please contact your Financial Aid Office informing them of this outcome. If the parent is denied a PLUS loan and chooses not to appeal or obtain an endorser, the student may be eligible for an additional Unsubsidized Stafford Loan. The amount of this additional federal student loan will be dependent on eligibility and grade level. Once the college receives a Parent PLUS Loan denial acknowledgement from the federal processor, an additional Federal Direct Unsubsidized Stafford loan will be added to the student’s financial aid package and a revised award letter will be emailed to the student.