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A Parent PLUS Loan is a Federal Direct Loan in a parent's name that pays for a dependent undergraduate's education. The parent is the borrower and is solely responsible for repayment. The student has no repayment obligation.
Parent PLUS has eligibility conditions for both the parent and the student:
- The parent must be a biological parent, adoptive parent, or stepparent listed on the FAFSA. Grandparents, legal guardians, and other relatives are not eligible unless they have legally adopted the student.
- The student must be a dependent undergraduate with a valid FAFSA on file and enrolled at least half time (6 credit hours) for funds to disburse.
Borrowing Limits
Parent PLUS is capped at $20,000 per academic year per student and $65,000 aggregate per student, effective July 1, 2026. Amounts forgiven, repaid, canceled, or discharged do not reset the aggregate.
Legacy provision. If a parent or the student had any Federal Direct Loan (Subsidized, Unsubsidized, or Parent PLUS) disbursed before July 1, 2026, the parent can instead borrow under the prior rules, with no fixed cap, up to the student's cost of attendance minus other financial aid received. Legacy eligibility runs for up to three years or until the student completes the current program, whichever is shorter. The student must remain continuously enrolled. Changing programs or taking a leave of absence can end legacy eligibility.
SF does not include Parent PLUS in aid offers and does not auto-package it. After a parent applies and is approved, SF adds the loan to cover the student's remaining cost of attendance.
The Application
The parent applies at StudentAid.gov [WEB LINK: StudentAid.gov] using their own FSA ID, not the student's. The application runs in a single sitting and takes about 20 minutes. A credit check runs automatically as part of the application.
Credit Decision
Parent PLUS does not use a credit score, income, or debt-to-income ratio. The credit check looks only for adverse credit history, defined federally as:
- Debts totaling more than $2,085 that are 90 or more days delinquent, charged off, or in collections
- Specific negative events in the past five years (bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, default on a federal debt, or a write-off of a federal education loan)
A credit decision is valid for 180 days. A parent who applies far ahead of the semester (for example, applying in January for a loan that will disburse in September) may need a second credit check.
If Approved
SF receives the application and the credit decision from the Department of Education. The Financial Aid Office adds the approved loan to the student's account, confirming the requested amount against the student's cost of attendance, other aid on file, and federal rules. Any remaining items, including the Master Promissory Note, post as document items so the parent can complete them at StudentAid.gov.
The MPN is the legal agreement to repay. A single MPN is valid for 10 years and usually covers all PLUS loans the parent takes out for the same student during that period. Processing can take up to 10 business days, longer during peak periods in July and August.
If Denied
A credit-denied parent has three paths forward.
Obtain an endorser. An endorser is similar to a cosigner on a private loan. The endorser agrees to repay the PLUS loan if the parent cannot, and cannot be the student. The endorser fills out the Endorser Addendum at StudentAid.gov using their own FSA ID and undergoes their own credit check. If the endorser is approved, the parent signs a new MPN for that loan and completes PLUS Credit Counseling before the loan can disburse. A new MPN is required each award year an endorser is used.
Appeal the credit decision. A parent who believes the decision is wrong, or who has a documented reason for the adverse items, can appeal to the Department of Education. A successful appeal also requires PLUS Credit Counseling.
Decline both routes. If the parent pursues neither, the student can ask the Financial Aid Office about additional Direct Unsubsidized Loan funds beyond the standard dependent limits. These are added on request.
PLUS Credit Counseling
Required for any parent initially denied who then gains approval through an endorser or appeal. It is separate from Entrance Counseling (which is for the student) and does not replace it. Counseling is completed at StudentAid.gov and takes about 15 to 20 minutes. The loan does not disburse until counseling is on file.
Fees
Every PLUS disbursement has a federal origination fee deducted, so the amount that posts to the student's account is less than the amount the parent requested. A parent who needs an exact target amount should request the gross amount rather than the net. The PLUS interest rate is fixed, and once a loan disburses the rate is locked for the life of that loan.
Disbursement and Refunds
Parent PLUS funds disburse to SF, not to the parent or student, in at least two installments per academic year, usually one per semester. Funds apply first to tuition, fees, and other allowable charges. If the loan is more than the charges, a refund is generated through the standard refund process, and the parent chooses on the application whether the refund goes to the parent or to the student.
Repayment
Repayment begins within 60 days after the final disbursement unless the parent requests an in-school deferment, which pauses payments while the student is enrolled at least half time but does not stop interest. Deferment is requested through the parent's federal loan servicer, not through SF.
Servicer assignments, repayment plans, and forgiveness programs run through the parent's federal loan servicer. A Parent PLUS loan first disbursed on or after July 1, 2026 is repaid under the Standard plan (fixed payments over 10 to 25 years depending on the balance) and is not eligible for the Repayment Assistance Plan.