PLUS Loan Instructions

Before beginning the application process on , please read the important information below.

What is the Federal Direct Parent Plus Loan?

The Parent PLUS Loan is a federal Direct Loan that is in the parent鈥檚 name for educational expenses of his or her dependent child enrolled at least six hours per semester. The people eligible to apply for the Parent PLUS loan are the student鈥檚 biological parents, adoptive parents, and stepparents (stepparent and spouse must be the parents on the FAFSA).

To receive the Parent PLUS Loan, the student must have a valid FAFSA on file and be a dependent student.

The parent and student must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

Is a credit check required?

Yes, a credit check is conducted on all Direct PLUS Loan applicants.

If you have placed a security freeze on your credit file, you must lift or remove the freeze at each credit bureaus before you continue. Your application will not be processed if you have a security freeze on your credit file.
-To qualify for a Direct PLUS Loan, you must not have an adverse credit history.

How much can I apply for?

The amount that a parent may borrow is based on the cost of attendance minus the financial aid and resources for the loan period. Typically, the maximum amount that a parent can apply for is listed in the student鈥檚 financial aid portal.

All loans are subject to Cost of Attendance limitations. No awards may be granted to a student who has reached the limit of his/her financial aid cost of attendance. If additional resources are received by the student after loans have been awarded, the loans may be reduced and funds returned to the U.S. Department of Education.

What is next if I am approved for the DPLS?

If approved for the Parent PLUS Loan, the parent borrower must sign a Parent PLUS Master Promissory Note at studentaid.gov, using his or her own Federal FSA ID (if he or she has not already done so). The Direct PLUS Loan MPN explains all the terms and conditions of the Direct PLUS Loan and is your legally binding agreement to repay all Direct PLSU Loans you received under the Direct PLUS Loan MPN.

What is next if I am denied the DPLS?

On the application, there are 2 options you can choose from if the credit check is denied. You can choose for the student to receive an additional Federal Direct Unsubsidized Stafford Loan, or you can choose to obtain an endorser. The parent could also choose to appeal the credit decision.

If the parent borrower is denied a PLUS loan, and the parent has chosen for the student to receive the additional Federal Direct Unsubsidized Stafford Loan, the additional loan is subject to the following limits:

students with 59 and under earned credit hours 鈥� up to $4,000 per academic year
students with 60 and over earned credit hours 鈥� up to $5,000 per academic year

If credit for the Parent PLUS Loan is denied the parent borrower may seek an override of the credit decision either through an appeal, or obtain paperwork for an eligible endorser, by contacting Federal Student Aid directly at 1-800-557-7394.

If the endorser option is selection, the endorser will fill out the Endorser Addendum on student aid.gov using the endorser鈥檚 studentaid.gov account information. The Borrower Information section of the endorser addendum will be automatically completed by ED. The Dependent Undergraduate Student Information section will be completed by ED if the borrower is the parent of a dependent student. Each time an endorser is used to obtain a reversal of credit denial, a new Master Promissory Note (MPN) must be signed by the parent borrower at . The parent who was denied the loan must also complete the Plus Credit Counseling on .

What is the interest rate for a Parent PLUS loan?

You can view the interest rates for the Direct Parent Plus Loan using the link below.

Other than interest, is there a charge for this loan?

Yes, there is a loan fee deducted from each disbursement. You can view the loan fee percentage at the link below.

When will the Parent PLUS loan be disbursed?

In accordance with federal loan regulations and LSU鈥檚 disbursement schedule, the loan will be applied to your LSU account once all the requirements are met. If all requirements are met, the loan funds may disburse prior to the term the student is enrolled. A check is made payable to the parent and is mailed to the address listed on the plus loan application if the loan disbursement is in excess of the amount owed to LSU, unless the parent requests on the Federal Direct Parent PLUS Loan Application that the refund be issued to the student.

*You may cancel all or a portion of your loan after funds have been credited to your student鈥檚 LSU account by notifying us in writing within 30 days.*

Consent to Obtain Credit Report

The information on your application may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called 鈥淭itle IV Program Files鈥� (originally published on April 12, 1994, Federal Register, Vol. 59, p. 17351) and 鈥淣ational Student Loan Data System鈥� (originally published on December 20, 1994, Federal Register, Vol. 59, p. 65532). Thus, this information may be disclosed to parties that The U.S. Department of Education authorizes to assist them in administering the Federal Student Aid programs, including contractors that are required to maintain safeguards under the Privacy Act. Disclosures may also be made for verification of information, determination of eligibility, enforcement of conditions of the loan or grant, debt collection, and the prevention of fraud, waste, and abuse and these disclosures may be made through computer matching programs with other Federal agencies.

To access the Direct Parent Plus Loan application, please visit .

You must have a FSA ID in order to log in and complete the Direct Parent Plus Loan Application. If you do not have an application, you can create one by clicking create account on the home page of .