Direct Parent Plus Loan
Parents can use the Federal Direct Parent PLUS Loan Program to help pay for educationally-related costs, including, but not limited to, tuition, fees, room/board, books, and miscellaneous personal expenses. Eligibility in this program is not contingent upon financial need. The Parent PLUS Loan is administered by the U.S. Department of Education and approval is based on the absence of adverse credit within the last five years (not based on credit worthiness). The U.S. Department of Education will run a credit check and notify Student Financial Services of the credit decision. As the parent, you are responsible for the interest on the loan while your student is in school, but payment can be deferred.
- The student must first file a FAFSA (listing TU’s school code 003185) before TU can determine eligibility for a Direct Parent PLUS Loan (PLUS).
- Only a parent (or a stepparent whose income was supplied on the FAFSA) can apply for this loan.
- Not based on financial need
- Your student must be at least half-time
- Eligibility must be determined and the loan originated before the end of the academic period for which the loan is being requested.
Click here to apply for the Parent PLUS Loan.
- You will need your FSA ID to apply (this is the same ID used to sign into your FAFSA account).
- All borrower information on the application is about the parent who is applying for the loan. The parent is the borrower not the student.
- An independent undergraduate student can only apply for a private loan.
- New Parent PLUS borrowers must sign an electronic Parent PLUS Loan Master Promissory Note (MPN) at the completion of the application process or later on the same website.
- A PLUS MPN is valid for loans made for a dependent student and is good for ten years.
- A separate PLUS MPN must be completed for each dependent student.
- The PLUS MPN is retained and updated by the U.S. Department of Education throughout your student’s education at TU.
You may still borrow funds if someone agrees to endorse the loan (promises to repay the loan if you fail to do so) or if you successfully appeal the decision by documenting extenuating circumstances.
- If you choose to obtain an endorser, the endorser may complete the Endorser Addendum online at https://studentaid.gov/endorser-addendum/.
- If you choose to appeal the decision, log in to https://studentaid.gov/ and select “Appeal a Credit Decision” from the dropdown for Apply For Aid. The Student Loan Support Center will then contact you with further instructions. Or, you can contact the Student Loan Support Center directly at 800-557-7394.
- If approved with an endorser, the PLUS MPN cannot be used for multiple PLUS loans, but is only good for the academic year or term the endorsed loan was approved for by the U.S. Department of Education.
- If approved with a credit appeal, a new PLUS MPN is not required.
- PLUS Credit Counseling must be completed at https://studentaid.gov/ for PLUS loans approved with an endorser or credit appeal.
Interest Rates / Fees
The current interest rate for a PLUS loan is determined each June for new loans being processed for the upcoming award year, which runs from July 1 to the following June 30. The fixed interest rate will be for the life of the loan. Interest begins accruing at the time of disbursement.
The government will deduct an origination (processing) fee from each PLUS loan disbursement. Refer to https://studentaid.gov/understand-aid/types/loans/interest-rates for the actual interest rate and origination fee for your PLUS loan.
How does my student receive the funds?
The funds from a PLUS loan are made in two equal disbursements for a two-semester loan. At least one-half of the loan period must elapse before the second disbursement can be released. The PLUS loan amount will credit to the student’s Bursar account no earlier than the first day of class each semester. A disbursement funds letter is mailed to the parent’s address when funds credit. PLUS loan funds that exceed student charges will be refunded to the parent or student as indicated by the parent during the online application process and in coordination with the Bursar’s Office refund guidelines.
A parent has the right to cancel all or any portion of the loan within 14 days of the loan crediting the student’s Bursar account.
Repayment on a PLUS loan begins once the loan is fully disbursed. The first payment is due 60 days after the final disbursement. A parent may choose to defer repayment while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after the student ceases to be enrolled at least half-time. Refer to https://studentaid.gov/manage-loans/repayment/plans for repayment plans.
All federal loans a parent applies for will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders, loan servicers, and schools determined to be authorized users of the data system.