Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Direct Parent PLUS loan is a federal loan that parents of dependent undergraduate students can apply for to help pay educational expenses. The loan is based on the parents' credit score, and the borrower should not have adverse credit history in order to be approved. The U.S. Department of Education is the lender. The maximum loan amount is calculated as the student’s cost of attendance minus any other financial aid received.

How do I apply for a Direct PLUS Loan?

To apply for the Parent PLUS Loan the student must:

  1. Have a completed FAFSA submitted to TAMUK
  2. Must be enrolled in at least 6 hours of courses (half-time status)
  3. The student must meet the Satisfactory Academic Progress (SAP). New incoming freshman students automatically meet SAP requirements.Only one parent needs to apply online at www.studentloans.gov TAMUK is electronically notified of the application.

If the loan is approved, the parent must complete the Master Promissory Note at www.studentloans.gov. Once the university receives the electronic application, a Parent PLUS Authorization form will be sent to the parent to complete and return to the Office of Financial Aid. After the application is finalized, the calculated award will be added to the student’s award package. All funds are received electronically and are posted to the student’s billing account.

If the loan is not approved, the TAMUK Office of Financial Aid will automatically offer an additional $4000 unsubsidized loan award for the year to the student.

Can I still receive a Direct PLUS Loan if I have an adverse credit history?

If a parent/borrower is unable to secure a PLUS loan, the undergraduate dependent student will be eligible for an additional unsubsidized loan ($4000/year) to help pay for his or her education.

What is the current interest rate?

For Direct PLUS Loans disbursed on or after July 1, 2018 and before July 1, 2019. The interest rates will be 7.6% fixed for the life of the loan.

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

Yes, there is a loan fee on all Direct PLUS Loans. The loan fee is a percentage of the loan amount and is deducted from each loan disbursement. The current fee percentage is 4.248%.

When do I begin repaying my loan?

Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out). 

Parent/borrower may contact your loan servicer to request a deferment while the student is enrolled at least half-time and for an additional six months after the student ceases to be enrolled at least half-time. If the loan is deferred, interest will accrue on the loan during the deferment. Parent/borrower may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. The loan servicer will notify the borrower when the first payment is due.