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PLUS Loans

Federal Direct Plus Loan

General Information

Special Instructions for Parent Plus Loans

Special Instructions for Grad Plus Loans

General Information

The Federal Direct Plus Loan (PLUS) is available to credit-worthy graduate students or to credit-worthy parent(s) of dependent, undergraduate students. PLUS loans are not considered need based aid; they are treated as an unsubsidized loan.  Borrowers are responsible for all interest that accrues on the loan from the day it is disbursed until the loan is paid-in-full.  The borrower may borrow up to the cost of attendance (COA) minus the estimated financial assistance.  Proceeds are normally disbursed electronically to the school in multiple disbursements (usually one per semester). Borrowers begin repayment after the loan is fully disbursed, however deferments are available.  Standard repayment lasts ten years. 

Credit information

The credit check is good for 180 days. Borrowers who have adverse credit and are denied will have an option to appeal or apply with an endorser. A borrower with adverse credit who applied with an endorser will need to complete the PLUS Credit Counseling

Adverse credit includes the following:

  • One or more debts with combined outstanding balance more than $2,085 and are 90 or more days delinquent or charged off or in collection within preceding two years.  OR
  • Default status, bankruptcy discharge, foreclosure, repossession, tax lien, or write-off of Title IV debt during the preceding five years. 

Endorser information:

  • needs to set up an FSA ID
  • completes an Endorser Addendum on studentloans.gov or paper addendum
  • will go through a “hard credit” hit
  • can set the loan amount
  • the Plus loan will show up on endorser’s credit history
  • the Plus loan borrower must complete a new Master Promissory Note with every new loan

How much have I borrowed?

You can see the total of all federal loans you have borrowed by logging into NSLDS with your FSA ID

Special Instructions for Parent PLUS loans

Declining the Parent PLUS loan:

Parent PLUS loans are offered to the Parents of Dependent Students.  If a parent would like to decline the loan that is being offered because they do not plan on borrowing the Parent PLUS loan, the PLUS Decline Form needs to be completed.  Requests will be processed within 2-3 business days of receipt.

If you have already applied for A Parent PLUS loan and would like to Decline an Accepted Parent PLUS loan, please complete the Parent PLUS Loan Request Form.

Parent FAQ

When does the Parent PLUS loan go into repayment?

Parent borrowers begin repayment after the loan is fully disbursed, and standard repayment lasts ten years.  Parents can request that their Parent PLUS loan is deferred while the student is enrolled in school.

Who is eligible to borrow a Parent PLUS loan?

  • Parents of dependent undergraduate students.  Parent includes biological or adoptive parent, step-parent if the biological or adoptive parent is remarried at the time the FAFSA was filed.  Parents do not include legal guardian or grandparent.
  • Have a valid Social Security Number
  • Be a U.S. Citizen / Eligible non-Citizen
  • Registered with the Selective Service (if required)
  • Not be in default
  • Not in Title IV grant / loan over-payment

Are there any exceptions to a parent applying for the Parent PLUS loan?

  • If the parent is incarcerated
  • Parent’s whereabouts are unknown
  • The parent’s income is limited to public assistance or disability benefits
  • The parent of dependent student is not a U.S. citizen or permanent resident

If one of these apply, please complete the Parent Plus Denial Special Consideration Form.

When can my student borrow additional loan funds in their name?

If a parent chooses not to appeal or pursue an endorser when credit is denied, this will allow the student to borrow additional unsubsidized loans.  Once the school receives the denied Parent PLUS application, the student must request the additional loans by completing the loan request form

Who is responsible for paying back the Parent PLUS loan?

The parent PLUS loan is a loan in the Parents name.  The Parent who took out the Parent PLUS loan is responsible for paying the loan back. 

How does applying for the Parent PLUS loan affect my credit?

When you apply for the parent plus loan, there is a hard hit to your credit history.  This may or may not affection your credit score.  It would affect your credit like any other application for a loan. Examples include car loans, mortgage, credit card, etc.

Can the Parent PLUS loan be transferred into the student’s name once the student graduates?

A Parent PLUS loan cannot be transferred into the student’s name; a parent plus loan will always be in the parent’s name.

What types of repayment options are available for the Parent PLUS loan?

There are several repayment options available that are designed to meet the individual needs of borrowers. Some repayment plans are not available to parent PLUS borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you will have 10 to 25 years to repay your loan, depending on the repayment plan that you choose.

What is the interest rate for the Parent PLUS loan?

Interest rates are set by the department of education each year.  See loan fees and Interest rates.

How do I calculate how much I should take out?

It is recommended that the student maximize his/her federal student loans first.  We recommend that you borrow direct cost only.  Direct costs include tuition, fees, books, and/or room and board.  These costs can be found on the student connection under financial tools. 

How do I request an Increase to my Parent PLUS loan once it has been awarded?

If your credit check is still valid, please complete the PLUS loan request form to request an increase to your Parent PLUS loan.  If your credit check has expired, a new Parent PLUS application would need to be completed.  You can complete the Parent PLUS application on studentloans.gov

How do I request a Decrease to my Parent PLUS loan?

To request a decrease to your Parent PLUS loan, please complete the Parent PLUS loan request from.

Special Instructions for Grad PLUS Loans

Grad PLUS FAQ

Who is eligible to apply for a Grad PLUS loan?

  • Must be enrolled in a Graduate degree program
  • Have a valid Social Security Number
  • Be a U.S. Citizen / Eligible non-Citizen
  • Registered with the Selective Service (if required)
  • Not be in default
  • Not in Title IV grant / loan over-payment

How do I apply for a Grad PLUS loan?

To apply for the Grad PLUS loan you will want to log into studentloans.gov.  Davenport will receive the notification of your application in approximately 2-3 business days. 

How do I request an Increase to my Grad PLUS loan once it has been awarded?

If your credit check is still valid, please complete the Grad PLUS loan request form to request an increase to your Grad PLUS loan.  If your credit check has expired, a new Grad PLUS application would need to be completed.  You can complete the Grad PLUS application on studentloans.gov

How do I request a Decrease to my Grad PLUS loan?

To request a decrease to your Grad PLUS loan, please complete the Grad PLUS loan request from.

How much can I receive in a Grad PLUS loan?

It is recommended that the student maximize his/her federal unsubsidized loans first.  We recommend that you borrow direct cost only.  Direct costs include tuition, fees, and books.  These costs can be found on the student connection under financial tools.  You are eligible to have financial aid (scholarships and loans) up to your cost of attendance

What is the Interest rate for Grad PLUS loan? 

The Interest rate for the Grad PLUS loan is higher than the interest rate for Unsubsidized loans.  Please remember to utilize your Unsubsidized loan eligibility first.  See loan fees and Interest rates.

How often do I need to apply for a Grad PLUS loan?

A new application needs to be completed each academic year.  For the upcoming academic year, the application becomes available in May at studentloans.gov.  Occasionally a second application will need to be completed:

  • If your credit has expired. 

    And

  • You are requesting additional Grad Plus loan funds OR
  • You are adding a spring/summer semester Grad Plus loan

When does the Grad PLUS loan Disburse?

A Grad PLUS loan disburses at the same time as other federal aid. Click here to view disbursement dates

What is the Maximum amount a student can borrow in a Grad PLUS loan?

A graduate student can have financial aid (scholarships, grants, discounts, unsubsidized loans, alternative loans, and Grad PLUS loans) up to their cost of attendance budget.

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