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This document outlines the details and procedures for applying for Direct PLUS Loans which parents can use to finance their dependent student's college education, including information on borrowing
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How to fill out Direct PLUS Loans / Federal PLUS Loans for parents

01
Visit the Federal Student Aid website.
02
Complete the Direct PLUS Loan Application for Parents.
03
Provide the necessary personal information such as Social Security number, address, and income details.
04
Select the student for whom you are borrowing the funds.
05
Complete a credit check by consenting to a credit history review.
06
Review the loan terms and conditions presented.
07
Sign the Master Promissory Note agreeing to the loan terms.
08
Submit the application and await notification of approval.

Who needs Direct PLUS Loans / Federal PLUS Loans for parents?

01
Parents of dependent undergraduate students who need additional funds for educational expenses.
02
Parents seeking to cover gaps in financial aid packages.
03
Those whose children attend college or graduate school and require extra financial support.
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The U.S. Department of Education makes Direct PLUS Loans to eligible parents through schools participating in the Direct Loan Program. (We also offer PLUS loans for graduate or professional students.) A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent borrower.
Drawbacks of the Parent PLUS Loan Discharge: Federal parent PLUS loans are rarely discharged for financial difficulties resulting from unemployment, age-related or other illnesses and injuries, or bankruptcy. Nontransferable: Parents cannot transfer the PLUS loan to their student to repay after they finish school.
What Are Some Reasons to Avoid PLUS Loans? First, PLUS loans have no automatic grace period. Then there's the fact they aren't eligible for most IDR plans. Then, borrowing too much is easy to do, and finally, they're nearly impossible to get out of, even in bankruptcy.
There are no set annual or aggregate limits. You may borrow up to your full cost of attendance, minus any other financial aid you receive (including Direct Subsidized Loans, Direct Unsubsidized Loans, scholarships, and certain fellowships).
Parent Plus loans have higher interest rates and fees, so they're generally not a good idea. Plus, it's your degree, not your parents, so you should be responsible for the costs. Stick with private loans and focus on manageable debt.
Parent Plus loans have higher interest rates and fees, so they're generally not a good idea. Plus, it's your degree, not your parents, so you should be responsible for the costs. Stick with private loans and focus on manageable debt.

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Direct PLUS Loans, also known as Federal PLUS Loans for parents, are federal loans that parents can use to help pay for their dependent child's college education. These loans can cover the total cost of college attendance, minus any other financial aid received.
The parent of a dependent undergraduate student is required to file for Direct PLUS Loans. The borrower must be the child's biological or adoptive parent, or stepparent if the stepparent's information is included on the FAFSA.
To fill out a Direct PLUS Loan application, parents must complete the PLUS Loan Application at the StudentAid.gov website. They will need to provide information such as their personal details, the child's school information, and consent to a credit check.
The purpose of Direct PLUS Loans for parents is to provide financial assistance for parents to cover the costs of their child's education, ensuring that their child has the necessary funds to attend college or university.
Parents must report personal information including Social Security Number, address, income, and details of the student's college, as well as agree to a credit check as part of the application process.
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