Federal Direct Parent Loan for Undergraduate Students

The Federal Direct Parent Loan for Undergraduate Students (PLUS Loan) is a federal loan program that provides a borrowing option for parents of dependent students.  Parents are able to apply for a loan up to the cost of attendance minus any financial aid the student is receiving.  Families are required to complete the Free Application for Federal Student Aid (FAFSA) to borrow the PLUS Loan.  By filing the FAFSA, the student will also be evaluated for any other federal aid eligibility.  Most students are eligible for a Direct Student Loan at a lower interest rate of 4.66% for the 2014-15 academic year.

2014-15 Federal Direct PLUS Loan Details

  • The parent and dependent student must be U.S. citizens or eligible non-citizens.
  • Loan approval is based on a credit review.
  • The current PLUS loan fixed interest rate is 7.210% 
  • The current PLUS loan has a 4.288% origination fee.
  • Repayment of a PLUS Loan begins 60 days after the loan is fully disbursed and parents have up to 10 years to repay the loan.
  • The borrower may request deferment of repayment while the student is enrolled at least half-time.
  • To request deferment, call the Direct Loan Servicing Center at (800) 848-0979. Deferment will not be approved until the first loan disbursement has been made.

Steps to apply for a PLUS Loan for the 2014-15 Academic Year

1. Complete and submit to the Financial Aid Office the 2014-2015 Union College Parent Loan Information Sheet.

2. Go to StudentLoans.gov and sign in using your Federal Student Aid PIN (the PIN the Parent used to sign the FAFSA). Click on "Request PLUS Loan" on the left side of the screen under the "PLUS Loan Option" heading. Select "Parent PLUS" as your loan type and complete the credit check process.

3.  If the credit check is approved, complete the Master Promissory Note (MPN) while still logged in to StudentLoans.gov. Click the "Complete MPN" link on the left side of the screen and choose "Parent PLUS Option." You will be guided through the MPN completion process.

  • If you have previously borrowed a Direct PLUS Loan for your current Union student, you do not need to complete a new MPN.
  • Parents who require an endorser for the PLUS Loan will be required to complete a new MPN each year.
  • Parents with multiple children in college must follow all above steps for each child. 

If your credit check is not approved, you will be provided with the following options, choose one.

  • Reapply using an endorser,
  • Award the student with additional Unsubsidized Direct Loan eligibility or
  • Neither.