Direct Parent PLUS Loans (credit approval required)
A Parent PLUS Loan is an education loan specifically for parents (biological or adoptive) of dependent undergraduate students only. Parents can borrow up to the cost of attendance minus any other financial aid the student is receiving. For instance, if the cost of attendance is $25,000 for the year and the student has a scholarship of $5,000 toward the school cost, the parent can borrow up to $20,000.
Applying for a Parent PLUS Loan
Parents must complete this application; it cannot be completed by a student. Be sure that all information is entered correctly, as incorrect information could delay the processing of the application. Below are step-by-step instructions to complete the application:
- Parent must log-in to www.studentloans.gov using the parent FSA ID (same FSA ID that was used to sign your student’s FAFSA)
- Click on the “Parent Borrowers” tab and Select “Apply for a PLUS Loan” from the left side menu
- Click “Complete PLUS Application for Parents” underneath “Direct PLUS Application for Parent Borrowers”
- Select the appropriate academic year from the drop-down box
- Award year example: 2020-2021= Fall 2020, Spring 2021, and Summer 2021
- Input student’s information in the section labeled “Student Information”
- Select choice for the “Request for Deferment While Student is Enrolled in School” option – Read statement thoroughly
- Select choice for the “Authorization for School to Use Loan Funds to Satisfy Other Charges” option – Read statement thoroughly
- Select choice for the “Credit Balance Option” – Read statement thoroughly
- Select the state the institution is located from the drop-down box (Georgia)
- Select school name from the drop-down box (Georgia Institute of Technology)
- Input the amount of the loan you would like to request in the “Loan Amount Requested” box
- If you would like to borrow the maximum, you may select “I want to borrow the maximum Direct PLUS Loan amount for which I am eligible, as determined by the school.”
- Select the “Loan Period” by using the drop-down boxes, you may request this loan to cover multiple semesters
- Fall 2020 and Spring 2021 - 08/2020 to 05/2021
- Fall 2020 Only - 08/2020 to 12/2020
- Spring 2021 Only – 01/2021 to 05/2021
- Summer 2021 - 05/2021 to 07/2021
Options If Denied
If you, the parent, are denied for the PLUS Loan for credit reasons, you have the following options:
- Student may receive an additional unsubsidized loan. Choose the “I do not wish to proceed” option to indicate that you will not continue to pursue the PLUS. The student will then need to send an email to request the additional unsubsidized loan to firstname.lastname@example.org
- Add an endorser to the PLUS application. The endorser must create an FSA ID and sign in to studentloans.gov. Select the link for “Endorse a Direct PLUS Loan” from the left side menu.
- Appeal credit decision. The parent will work with the Department of Education to provide documented proof of extenuating circumstances leading to the adverse credit decision. This website provides a list of suitable documents for appealing adverse credit situations.
- Selecting “Undecided” will stop the application process until a different option is selected.
The current interest rate as of July 1, 2019 is a fixed rate of 7.08 percent. Interest rates are set by the Department of Education around July 1st every year and will be updated accordingly at that time on our website.
Repayment of principal and interest begins 60 days after the loan is fully disbursed or parents now have the option to defer payments while their student is in school. Parents can also opt to let the interest accrue until the student leaves school; However, any interest that accrues from the date of disbursement is added to the outstanding loan balance through a process called capitalization.
The duration of a credit check for Direct Plus Loan applicants is 180 days. For more information please visit the Credit Check section on Student Loans Frequently Asked Questions.
Master Promissory Note & Loan Counseling
A separate Master Promissory Note (MPN) must be completed online at studentloans.gov by the parent to receive the loan.
A provision requires special loan counseling for any PLUS Loan applicant who has an adverse credit history but who qualifies for a PLUS Loan through the process of reconsideration due to extenuating circumstances or by obtaining an endorser for the loan.
Comprehensive information on these loans is available from the U.S. Department of Education.
Page last reviewed/updated 09/30/2019