The “PLUS” Loan
The Federal Direct Parent Loan for Undergraduate Students (PLUS) is available from the federal government to assist parents in meeting the cost of their child's education. These loans are made to parents of dependent undergraduate students who are registered at least half time (six credits or more) who are matriculated in a degree or certificate program.
Repayment begins 60 days after the last disbursement (for example: after the Spring disbursement for a Fall/Spring loan). Eligibility is determined by the Office of Financial Aid, and the amount borrowed may not exceed the cost of attendance less any other financial aid the student is eligible to receive.
To borrow a PLUS loan for a student, the parent must be the student's biological or adoptive mother or father. A stepparent is also eligible to borrow a PLUS loan if his/her income and assets were reported on the FAFSA. A legal guardian is not considered a parent for financial aid purposes. The Federal Direct Loan Servicer will complete a credit check on the parent borrower prior to approval.
Step 1. Students and parents must first complete the Free Application for Federal Student Aid (FAFSA) by using “FAFSA on the Web” at www.fafsa.ed.gov. Once the FAFSA has been completed, you may apply for the Federal Direct Parent Loan (PLUS) as follows:
Step 2. To apply for a PLUS loan, parents must go to the StudentLoans.gov web site. Once there, a parent will need to "Sign In" to the site using their federal PIN. When signed in to the site, the parent will then select "Start PLUS Application Process".
Step 3. First-time parent borrowers must also complete and sign a Federal Direct PLUS Loan Master Promissory Note (MPN). If you have already signed a Federal Direct PLUS MPN previously for DCC or another Federal Direct Loan college (online or paper), you do not need to complete a new PLUS MPN. A Federal Direct PLUS MPN can be completed at the StudentLoans.gov web site.
Parents who have a federal PIN number (used as the parent signature on the FAFSA on the web application) are now able to sign their MPN electronically on the web at StudentLoans.gov. To complete an electronic MPN, parents will need to use their PIN as an online signature.
Parents who do not have a federal PIN number may request a new or duplicate PIN at www.pin.ed.gov.