PLUS Loans Federal Student Aid Parent plus loan deferment

Summary of Article

Click Here to apply for a Parent PLUS Loan

Before beginning the application process, please read the important information below.

Be sure to read and understand the special options to Parent PLUS processing.

The Parent PLUS Loan is a federal Direct Loan made in the parent's name for the educational expenses of his or her dependent child enrolled at least six hours at The University of Alabama. Persons eligible to apply for the Parent PLUS loan are: the student’s biological parents, adoptive parents, and, in some cases, stepparents. Legal guardians and non-adoptive grandparents or other relatives are not eligible. Other qualifications must be met and are described below.

Before considering a parent's application for a Parent PLUS Loan, The University of Alabama must receive and verify the results of the Free Application for Federal Student Aid (FAFSA) submitted by the student for whom the Parent PLUS Loan is being requested. The student is not required to accept Federal Direct Subsidized and/or Unsubsidized Loans offered on the basis of FAFSA results.

All loans are subject to Cost of Attendance limitations. No awards may be made to a student who has reached the limit of his/her financial aid budget. If additional resources are received by the student after loans have been awarded, the loans may be reduced and funds returned to the U.S. Department of Education.

If approved for the Parent PLUS Loan, the parent borrower must sign a Parent PLUS Master Promissory Note at, using his or her own Federal Student Aid PIN (if he or she has not already done so).

If credit for the Parent PLUS Loan is denied, the parent borrower may seek an override of the credit decision either through an appeal, or obtain paperwork for an eligible endorser, by contacting Direct Loans Applicant Services directly at 1.800.557.7394. Also, the endorser may obtain the reference number for the loan from the Student Financial Aid Office, and, using his or her own Federal Student Aid PIN (not the parent borrower's), complete the Endorser Addendum available at Each time an endorser is used to obtain a reversal of credit denial, a new Master Promissory Note (MPN) must be signed by the parent borrower at

If informed that a credit override will be sought, Student Financial Aid will originate a Parent PLUS Loan in order to expedite the process of obtaining a credit override. This loan origination does not guarantee the eventual acceptance and disbursement of the loan.

A student may not be awarded for all semesters for which the parent has applied. In this case, the PLUS application will be reviewed again for subsequent semesters, which may require another credit check. For additional details, including interest rates and repayment information, please visit the Federal Student Aid website for the most complete information.

Other Parent PLUS loan information



Repayment of the Federal Direct PLUS Loan begins within 60 days after the final loan disbursement, unless the parent borrower is eligible for a deferment. For information about repayment terms/rates, deferment, and other terms of the PLUS Loan, contact: Student Loan Support at 1-800-557-7394, or at

Denied Loans:

If denied, you will be notified by Direct Loans. If you appeal your credit denial or seek an endorser, you may also be required to complete federal PLUS loan counseling. Direct Loans will notify you if you need to complete the counseling requirement.

If credit for the Parent PLUS Loan is denied and the parent borrower does NOT state that a credit override will be sought, an additional Unsubsidized Stafford Loan will be awarded to the student, subject to eligibility.

If informed that a credit override will be sought, Student Financial Aid will originate a Parent PLUS Loan in order to expedite the process of obtaining a credit override. This loan origination does not guarantee the eventual acceptance and disbursement of the loan.

CREDIT OVERRIDES — APPEAL: By contacting Student Loan Support at 1-800-557-7394, the parent borrower may seek an override of the credit decision through an appeal, either disputing the credit report, or clearing up “adverse” items.

CREDIT OVERRIDES — ENDORSER: Direct Loans will provide the parent borrower with an endorser code, or the parent borrower may contact Student Financial Aid to obtain the Loan ID #. The endorser, using his or her own Federal Student Aid PIN (not the parent borrower's), may then complete the Endorser Addendum available at Each time an endorser is used to obtain a reversal of credit denial, a new Master Promissory Note (MPN) must be signed by the parent borrower at Alternatively, the parent borrower may obtain paperwork for an eligible endorser by contacting Student Loan Support at 1-800-557-7394.


The information on your application may be disclosed to third parties as authorized under routine uses in the Privacy Act notices called “Title IV Program Files” (originally published on April 12, 1994, Federal Register, Vol. 59, p. 17351) and “National Student Loan Data System” (originally published on December 20, 1994, Federal Register, Vol. 59, p. 65532). Thus, this information may be disclosed to parties that The U.S. Department of Education authorizes to assist them in administering the Federal Student Aid programs, including contractors that are required to maintain safeguards under the Privacy Act. Disclosures may also be made for verification of information, determination of eligibility, enforcement of conditions of the loan or grant, debt collection, and the prevention of fraud, waste, and abuse and these disclosures may be made through computer matching programs with other Federal agencies.

Annual Loan Limit:

A borrower may borrow a maximum of the student’s cost of attendance minus all other aid sallie mae student loan payment

Parent Plus Loan Application Denied Why That’s Actually .

The Federal Direct Parent PLUS Loan is a loan for parents of dependent students to supplement the financial aid package.  The PLUS (Parent Loan for Undergraduate Students) Loan allows parents to borrow money to cover any educational costs not already covered by the student's other financial aid.  PLUS loans are the financial responsibility of the parents, not the student.


The Parent borrower must be the student's biological or adoptive parent or the student's step-parent (if the step-parent information was provided on the FAFSA). Your child must be a dependent student who is enrolled at least half-time and making Satisfactory Academic Progress (SAP).  In addition, parents and their child must be U.S. citizens or eligible noncitizens with a domestic address.  PLUS Loans are not processed until the student's financial aid has been awarded.

To be eligible for a PLUS Loan, the parent must pass a credit check that indicates they do not have adverse credit history.  For the PLUS loan, adverse credit history is defined as being 90 or more days delinquent on any debt or having any debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.

If a parent is denied a PLUS loan, the Financial Aid Office will proceed based on the parent's preference as indicated on the PLUS Loan application.  Parents may appeal the credit decision, find a co-signer, or the student may borrow additional Unsubsidized Loan based on annual loan limits.

Application Process

The Parent PLUS Loan program does not allow a student to apply for funds as the borrower. A parent must complete the PLUS Loan Request process for the appropriate aid year.  A new application must be completed every year the parent wishes to borrow a PLUS Loan.  Parents can now submit their PLUS Loan application online and receive an instant credit check decision.  (See below for instructions on How To Apply.)

On the application, parents must indicate the amount of loan you would like to borrow.  The maximum amount a parent is eligible to borrow is based on the student's Cost of Attendance minus other financial aid.  The Cost of Attendance includes expenses which every student will not incur, so it is important to formulate your own individual budget to calculate the amount of PLUS you need to borrow. 

How to Apply

  1. Parents who wish to apply for the loan need to complete the PLUS Request Process online at after determining the amount they would like to borrow. 
  2. The parent will need to sign in using their own FSAID issued by the Department of Education. If you do not have an FSAID, you can apply for one at  Once you have signed in, select "Request Direct PLUS Loan" to begin the application.
  3. Complete the application by filling in the requested information.  A credit check will be performed and results will be displayed immediately.  If your application is approved, you will be notified when to complete "PLUS Loan Master Promissory  Note".  (Master promissory notes are not available to sign until mid-July before the school year begins.)  Your loan information will be sent to our office for additional processing. 

The U.S. Department of Education serves as the lender for all parent PLUS loans.  As your lender, the U.S. Department of education may determine that you as the borrower have an adverse credit history.

A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. To qualify for a PLUS loan, you cannot have an adverse credit history.  Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

  1. You have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report.
  2. You have been placed in collection or charged off (written off) during the two years preceding the date of the credit report.
  3. During the five years preceding the date of the credit report, you have been subject to:

Denied Credit Check Options

A credit check will be performed during the application process.  If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education's satisfaction extenuating circumstances relating to your adverse credit history. The endorser cannot be the child on whose behalf you are borrowing.

If your credit check has been denied, you will be given the following options:

  1. Appeal the decision.  Details on how to appeal are given on the site.  Appeals are reviewed by the Department of Education.
  2. Obtain an endorser (co-signer).  If you choose this option, the endorser must complete the "Endorse Direct PLUS Loan" section by signing in to using his or her own FSAID.
  3. Not Pursue the PLUS Loan.  If you select this option, we will automatically offer your student additional Unsubsidized Direct Loan funds based on the maximum amount allowed. (Freshman/Sophomore - $4,000 max; Junior/Senior - $5,000 max.)
  4. Undecided. If this option is selected the Financial Aid Office will not be able to complete the PLUS loan process or award additional unsubsidized loan to the student until we are contacted by the parent who has applied for the loan.

If you apply for a Direct Plus Loan and are notified that you have an adverse credit history, you will be given detailed information on the options for qualifiying by obtaining an endorser or submitting documentation of extenuating circumstances, along with instructions on how to complete the required PLUS counseling.

PLUS Counseling

PLUS Loan Counseling is required for parents seeking to appeal or obtain an endorser due to adverse credit.  Parents must log in to using their own FSAID to complete PLUS Counseling.  Use of another person's FSAID constitutes fraud.  Use only your own FSAID information. PLUS Loan Counseling takes approximately 15-20 minutes to complete.

Before completing counseling you may want to have details on your income, financial aid, and living expenses. This includes information from your's or your child's student account information and details on your future income, financial aid, and living expenses if known.

Once you have logged into, select "Complete Counseling" on the left hand navigation bar.  Select "PLUS Counseling" under "Choose Counseling Type"

Master Promissory Note (MPN)

First time borrowers must complete a Master Promissory Note (MPN). The MPN is a legal document in which the borrower promises to repay his/her loans and any accrued interest. It also explains the terms and conditions of the loan. If you are borrowing for more than one student, you must complete a separate MPN for each student. To complete an MPN online, the borrower will be required to use a Department of Education issued FSAID number. If the borrower does not have a FSAID number, they can apply for one at The website for the MPN is

Interest Rate

Interest rates are established each year based on an index rate.  The interest rate, once established on a loan, will be fixed for the life of that loan. 

The rate for loans disbursed from July 1, 2018 - June 30, 2019: 7.6%

The rate for loans disbursed from July 1, 2017 - June 30, 2018: 7.00%

The rate for loans disbursed from July 1, 2016 - June 30, 2017: 6.31%

For prior interest rate information, visit

Loan Fees

Loan fees are deducted from each loan disbursement. The fee is currently 4.264% for PLUS Loans disbursed after October 1, 2017.  The fee is 4.248% for loans disbursed after October 1, 2018.


After the Direct Loan is disbursed to the student, the loan is assigned to one of the Federal Direct Loan Servicers.  The Loan Servicer will send periodic statements to the borrower regarding their loan status.  Repayment begins 60 days after the funds are fully disbursed, and the standard repayment term is 10 years.  Parents have the option to defer payments on the PLUS loan while the student is in school and for a six-month grace period after the student graduates or drops below half-time enrollment.  Please be aware the interest continues to accrue while deferred and is capitalized when the loan enters repayment.  We recommend the parent at least pay the interest while in deferment.  For questions on deferment, forbearance, or loan payments, contact your Loan Servicer.  If you need help contacting your Loan Servicer, visit the National Student Loan Data System (NSLDS) website.

To estimate what your payments will be you may wish to use the following Repayment Calculator federal student loan servicing

Federal Direct Parent PLUS Loan University of Wisconsin .

Parent loans for undergraduate students are federal loans parents may borrow to help pay the educational expenses of a dependent undergraduate student enrolled in at least 6 credit hours a semester.

Borrowing Interest Rates

To be eligible for a PLUS Loan, the student must have a completed FAFSA on file and an amount accepted on their Award Letter, and the parent must be able to pass a credit check that indicates that they don’t have adverse credit history. The borrower can’t 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 5 years.

A parent may borrow up to the total of the estimated Cost of Attendance minus resources and all other financial aid received by the student. The interest rate on a Federal Direct Parent PLUS loan borrowed between July 1, 2018 and June 30, 2019 is 7.60%. Interest is charged on the loan from the time the loan funds are disbursed until it’s paid in full. The loan origination fee for loans borrowed between October 1, 2018 and September 30, 2019 is 4.248%, and is deducted from your loan at the time of disbursement.

How to Apply

  1. File a FAFSA and submit any documents requested by our office to finalize the application process. A financial aid Award Letter listing all financial aid available to the student will be created and made available electronically. Parent PLUS Loan eligibility is calculated by subtracting the total amount of a student’s grant, scholarship, Work-Study, and loan funding from the overall cost of attendance.
  2. The student must electronically accept the Parent PLUS Loan award on their Award Letter before the borrower submits a PLUS Loan application. If the full amount of the award isn’t necessary, enter the desired amount in the Partial Amount box within the Award Letter.
  3. The parent borrower should go to the Department of Education website and sign in using their FSAID and password.
  4. Once logged in, find the link in the center of the page that reads “Apply for a Direct PLUS Loan.”
  5. You will have the option of applying for either a Graduate PLUS or Parent PLUS loan. Click on the link for the Parent PLUS Loan.
  6. Select an Award Year.

10. Complete each page of the application process until you come to a Congratulations page indicating that you’ve completed the loan request and whether or not the credit has been approved.

11. If the loan is approved and you would like to continue with the process, click the “Complete Loan Agreement (Master Promissory Note)” link in the center of the home page. If you have completed an MPN for this same student and did not have an endorser on the previous MPN, you do not need to complete this step.

If the loan was denied, the student can seek an additional unsubsidized loan for the academic year. The student will make this request on their Award Letter via the "Request Changes" option at the bottom of their letter. 

12. Make sure to enter all required information and click “Submit” at the end of the MPN to ensure the information is electronically sent to the Direct Loan Servicing Center.

13. The Office of Student Financial Aid will then certify borrower eligibility with the Direct Loan Servicer. This certification process begins around June 1 each year.

Receipt of Funds Refunds

If credit is approved and an MPN has been completed, loan funds will begin to be disbursed one week before classes begin. The funds will be applied to tuition, fees, and other university charges, and any extra money will be refunded to either the student or parent, depending on what was indicated on the application. If the PLUS Loan process isn’t completed by the first disbursement, subsequent disbursements are scheduled twice a week up until the last week of each semester.

Application Denial

If a Federal Direct Parent PLUS Loan application is denied, the borrower may obtain a qualified endorser or it may be possible for a student to borrow an additional amount of unsubsidized loan. In this case, the dependent student’s 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 access their Financial Aid Award Letter, select “Request Changes,” and ask to be re-packaged for additional unsubsidized loan funds.


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 may be requested by parent borrowers provided the student is enrolled at least half time in a degree-seeking program.

To learn more about available deferments and how to apply for deferment status, please contact your loan servicer. To find out which lender is servicing your loan, visit the National Student Loan Data System, log in using the parent borrower's information, and select the number next to each loan for contact information dcu auto loan rates

PLUS Loans Federal Student Aid

If credit is denied, the parent will have the ability to obtain an endorser by completing the request on The endorser will need the PLUS Endorser Code to connect the endorsement to the denied PLUS loan. This can be found in the denial notice email or by logging into and selecting “Direct PLUS Loan Requests.” We highly recommend using an electronic endorser as it is the fastest way to complete this request. If you choose to complete your request with a paper endorser, you must notify our office when the endorser is approved, or your loan may be delayed.

If the parent does not have an endorser, the student can contact our office to request an additional unsubsidized Federal Direct Loan.

Submit an Appeal

You can appeal to the Department of Education with proof the credit information used was incorrect or has been corrected or extenuating circumstances relating to the credit history. Sign in to and click ‘Document Extenuating Circumstances’ in the left-hand navigation below ‘PLUS Loan Process’. After you complete your appeal you will be contacted by the Federal Loan Origination Center within three business days to discuss your appeal. If you do not receive a call, you may contact them at 1-800-557-7394.

If you qualify for a Direct PLUS Loan after obtaining an endorser or documenting extenuating circumstances, you will be required to complete loan counseling on third federal savings and loan online banking

SoFi Frequently Asked Questions on Student Loan .

If you, your spouse or your dependent is temporarily totally disabled, you may be eligible for this deferment. To qualify, you must:

Temporary Disability Deferments are granted in six-month increments for up to 36 months. To continue the deferment, you must request the deferment and a physician must re-certify your condition, or that of your spouse or your dependent, every six months.

To apply, contact your loan servicer(s). If you need additional assistance, contact Solutions at ECMC for help completing the Temporary Total Disability Deferment Request 401k loan interest

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