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Parent Plus Loan

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan program is a federally funded program that allows a parent of a dependent undergraduate student to borrow an education loan to supplement their student’s aid package. It is not based on financial need. The federal Parent Loan for Undergraduate Students (PLUS) allows a parent to borrow money to help cover the total cost of attendance (including tuition and fees, living allowance, and any other eligible school expenses) minus any aid the student is receiving.

Interest Rate and Fees

For 2018-2019, Direct Parent PLUS Loans have a fixed interest rate of 7.6 percent and an origination fee of 4.264 percent if disbursed on or after 10/1/17. For loans disbursed on or after 10/1/18, the origination fee is 4.248 percent. The origination fee is subtracted from the loan before disbursement.

Parents borrow directly from the U.S. Department of Education and repay to an approved Federal Student Aid Loan Servicer, while MassArt’s Office of Student Financial Assistance processes the loan.

Application Process

To request a Direct Parent PLUS Loan, parents will apply online at studentloans.gov. MassArt will be notified if the parent is approved for the loan. If approved, the first-time parent borrower will also complete a Master Promissory Note on the same website.

Federal Direct PLUS Loan Borrower Application Instructions >>

Loan Eligibility

Eligibility for the PLUS loan depends on a modest credit check that determines whether the parent has an adverse credit history. If a dependent student’s parent is denied a PLUS loan, the student becomes eligible to borrow more unsubsidized Stafford Loan funding, up to $5,000 additionally, depending on their grade level. Alternately, a parent may appeal the decision, or obtain a credit-eligible endorser to co-sign the loan. If you have any questions about the reason for a denied PLUS Loan, you may contact the Direct Loan Origination Center at 1.800.557.7394.

Loan Repayment

Direct Parent PLUS Loan repayment begins 60 days from the date the loan is fully disbursed. For any Parent PLUS Loans borrowed after July 1, 2008, parents have the option to defer their PLUS Loan repayment while their student is enrolled for at least six credits per semester, but can choose to pay off the accumulating interest during that time. In order to choose the deferred repayment plan for their PLUS Loan, parents must contact the Direct Loan Servicing Center at 1.800.848.0979 after the loan has been disbursed to the college.