Federal Parent PLUS Loans
Federal Direct Parent PLUS Loan
The Federal Direct PLUS program is available to the parents of dependent undergraduate students. Eligibility requires credit approval and may require an endorser. PLUS Loans are funded by the federal government. The interest rate is 7.9 % fixed. There is a loan fee of 4.2% of the principal amount charged for each Federal Direct PLUS Loan that you borrow. The total fee is reduced to 1.5% due to an up-front interest rebate. The fee and rebate will be applied before the funds are disbursed to the school. Students must make their first 12 consecutive payments on time in order to retain this up-front rebate. Loan fees are outlined in the Disclosure Statement that the borrow receives from the U.S. Department of Education. Parents can borrow up to the school's Cost of Attendance per academic year minus other financial aid awarded.
There are two steps to apply for a Direct PLUS Loan:
1. Complete the PLUS Request Process - All Borrowers
2. Sign a Direct PLUS Master Promissory Note - Required for first time PLUS Loan Borrowers at CalArts