Federal Parent Loans
What is a Federal Direct PLUS Loan?
The Parent Loan for Undergraduate Students (PLUS) is an unsubsidized loan that allows parents to borrow on their student’s behalf to help pay for educational expenses when their student is enrolled half time (6+ credits) or more in required coursework. Parents may borrow up to the cost of attendance less all other financial assistance. PLUS loans are federal loans through the U.S. Department of Education. The Direct PLUS Loan application must be completed annually. Borrowers are encouraged to consider their potential loan repayment and total loan indebtedness before utilizing loans to assist with their educational costs. The Federal Student Loan Repayment Simulator can assist in helping to estimate future repayments of federal student loans.
How to apply
You must complete a PLUS Application annually and Master Promissory Note (MPN) once.
- Go to studentaid.gov
- Go to the Apply for Aid tab
- Under Apply for a PLUS Loan, select Apply for a Parent PLUS Loan
- Go to the Complete Aid Process tab
- Under Complete Master Promissory note, select the Parent PLUS MPN
You will be asked to authorize a credit check and the determination will be immediately available. You will be sent a disclosure statement when the loan is originated and when disbursements are made. The disclosure statement will include specific information including the loan amount, loan fees, and the expected loan disbursement dates.
On the application, borrowers will have the option to select deferment while the student is enrolled at least half time and for an additional 6 months after they graduate, leave school or drop below half time enrollment.
Interest Rates & Origination Fee Adjustments
PLUS Loans disbursed on or after July 1, 2023 and before July 1, 2024 have an interest rate of 8.05%.
PLUS Loans disbursed on or after October 1, 2020 and before October 1, 2024 have a loan origination fee of 4.228%.
Loan origination fees are deducted from each loan disbursement. Use the loan fee calculator to determine the net loan amount.
More Information for Parents
- Borrower must be the student's biological or adoptive parent, or the student's stepparent, if the biological or adoptive parent has remarried at the time of application.
- Parent PLUS Loan borrowers must not have an adverse credit history.
- Parents and their dependent student must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans, or owe an overpayment on a federal education grant.
The following options are available if the credit check is denied:
- Parent borrowers may wish to appeal the credit decision or
- Parent borrowers may obtain a credit-worthy endorser or
- Students may submit a Request for Additional Unsubsidized Direct Student Loan form available on the financial aid website or
- Students may pursue a private student loan
To cancel or change an undisbursed PLUS Loan, parent borrowers may either email financialaid@wwu.edu from the email address used on the Parent PLUS application detailing the change requested or they may complete the PLUS Loan Revision form available on the financial aid website.
To cancel a disbursed PLUS loan within 120 days of disbursement, contact the Student Business Office at (360) 650-2865. To cancel a disbursed PLUS loan after 120 days of disbursement: borrowers may contact their loan servicer directly about making payments.
Borrowers may contact their loan servicer to discuss various repayment plans available. Typically borrowers will have 10-25 years to repay the loan depending on the repayment plan.
PLUS loan disbursements are first applied to the balance on a student’s account including tuition and fees and on campus living expenses, if applicable. Additionally, they will be applied to other charges on the student’s account if an Authorization to Apply Financial Aid Funds form is on file with the Student Business Office. If the loan disbursement exceeds the student’s account balance, excess funds will be refunded to the parent borrower via check or to the student based on the preferences indicated on the PLUS Loan application.
The PLUS Loan enters repayment after the loan is fully disbursed (paid out). There are several repayment plans available to review or use the repayment estimator.
Contact the loan servicer to request deferment while your student is enrolled at least half-time, and for an additional six months after your student ceases to be enrolled half-time or more. If your loan is deferred, interest will accrue on the loan during deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends.