Federal Direct Parent PLUS Loans
Parent Loans for Undergraduate Students (Federal Direct Parent PLUS) are federal loans that parents with good credit histories may borrow to help pay the educational expenses of an undergraduate student enrolled in at least 6 credit hours per semester.
A parent may borrow up to the total of the Estimated Cost of Attendance less resources and all other financial aid received by the student. The interest rate is a fixed interest rate of 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.
Apply - Complete a Federal Direct Parent PLUS Loan Request Form
If a Federal Direct Parent PLUS loan is the only financial aid you desire, then filing a FAFSA is not required. Complete the Federal Direct Parent PLUS Loan form and return it to OSFA by the deadline dates listed on the form.
Parent Eligibility
Parents must submit to a credit check by the United States Department of Education to be eligible for a Federal Direct Parent PLUS Loan. You authorize the credit check when you sign the Federal Direct Parent PLUS Loan Request Form.
Federal Direct Parent PLUS Loan Processing / Receipt of Funds
The Direct Loan Processor will notify the parent borrower and the Office of Student Financial Aid of the result of the credit check. The borrower cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years. If credit is approved, loan funds will be disbursed. The funds will be applied to tuition, fees, and other university charges.
Refunds
If the Federal Direct Parent PLUS disbursement generates a refund after University charges are paid, the refunded amount will go to the parent unless the parent borrower checks the appropriate box on the PLUS Request Form authorizing that the refund be sent to the student.
Denied
If a Federal Direct Parent PLUS Loan Application is denied, it may be possible for a student to borrow an additional amount of unsubsidized loan. The dependent student annual maximum allowable loan limit will be replaced by the independent student maximum allowable loan limit at the same class level. If the application is denied, the student should contact OSFA for more information.
Repayment of Federal PLUS Loans
Repayment begins within 60 days of the final loan disbursement during the academic year. Principal and interest payments may be deferred if the borrower meets deferment requirements. In-school deferments are available for borrowers enrolled at least half-time in a degree seeking program and are not automatic.
To learn more about available deferments and how to apply for deferment status, please contact the U.S. Department of Education’s processing center at 800-848-0979.
Private PLUS Lender Not Accepted
You may receive information about the PLUS program offered through private lenders. However, the University of Illinois at Urbana-Champaign participates in the Federal Direct PLUS program; therefore, you cannot use a private PLUS lender.
