2024 How to Apply for Parents PLUS Loan 

A Parents PLUS Loan is a federal loan offered by the U.S. Department of Education to help parents of dependent undergraduate students cover college costs.

It can be used to pay for the difference between the school’s cost of attendance and any other financial aid your child receives, such as scholarships, grants, and federal student loans

How to Apply for Parents PLUS Loan 

Most schools need you to apply for a Direct PLUS Loan online, but some have their own application methods. This website has a list of colleges that participate in the Direct Loan Program. When you choose your child’s school from the list, the site will inform you if it has a distinct application process. In that instance, contact the school’s financial assistance office to find out how to apply for a parent PLUS loan.

Note: Before applying for a parent PLUS loan, ensure that your child has completed the FAFSA.

Steps to Receive a Loan

If you are eligible for a parent PLUS loan, you must sign a Direct PLUS Loan Master Promissory Note (MPN) and agree to the loan’s terms. For more information on the procedure, contact the financial assistance office at the school where your child plans to enroll.

If you are taking out parent PLUS loans for multiple children, you must sign separate Direct PLUS Loan MPNs for each child.

Read more: 2024 What is Parent PLUS Loans?

How Funds Are Delivered

The school will initially apply the parent PLUS loan payments to the student’s school account to cover tuition, fees, room and board, and other school expenses. If any loan funds remain, your child’s school will provide them to you to assist with other educational expenses for the student. With your permission, the school may pay the remaining loan amounts straight to the student. Learn more about receiving aid.

Loan Servicer’s Role

Your loan servicer will contact you after you get your parent PLUS loan (you are responsible for repaying the loan). Your loan servicer will offer regular status updates on your parent PLUS loan.

Loan Repayment Plans

Parent PLUS borrowers qualify for the following repayment plans:

  • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan

Parent borrowers can become eligible for a second repayment plan, the Income-Contingent Repayment Plan, by combining their parent PLUS loans into a Direct Consolidation Loan.

Can the loan be transferred to the student?

No, Direct PLUS Loans made to parents cannot be passed to their children. You, as the parent borrower, are legally accountable for repaying the debt.

How to Cancel a Loan

Yes. You may cancel all or part of your loan prior to its disbursement by notifying your child’s school. After your loan has been disbursed, you may cancel all or part of it within a particular time frame. Your promissory note and any extra information you get from the school will include the procedures and time frames for canceling your loan.

Loan Forgiveness and Discharge

Under certain situations, you may be able to have all or a portion of your loan forgiven (canceled) or dismissed. Learn about loan forgiveness, cancellation, and discharge.

If you are seeking Public Service Loan Forgiveness, you must return your loans using an income-driven repayment plan. The Income-Contingent Repayment Plan is the only income-driven repayment plan available to parent PLUS borrowers. To repay your parent PLUS loans using the Income-Contingent Repayment Plan, you must first consolidate them into a Direct Consolidation Loan.

Find Your Parent PLUS Loan Information

Visit “My Aid” to examine information on all federal student loans and other financial help you’ve received, as well as contact information for your loan servicer.

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