Parent (PLUS) Loans

The One Big Beautiful Bill Act (OBBBA) signed into law July 2025 is bringing significant changes to the federal PLUS Loan program. This page will be updated with additional information once the Department of Education releases their final rules regarding OBBBA to financial aid offices. Federal Student Aid (FSA) has published information on studentaid.gov in a Q&A format regarding the new changes and will continue to update the information until all rules are finalized.

• Starting July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Students currently enrolled at Union through the end of the spring 2026 term who have previously borrowed a federal loan can qualify for an exception to the new loan limits.

The 2026/27 PLUS Loan application cycle does not begin until after the current academic year has ended in mid-June.

2025-2026 Instructions

1. Submit 2025-2026 Parent Loan Information Sheet to the Financial Aid Office

2. Obtain credit approval
Go to studentaid.gov and sign in using your parent FSA ID. Under Apply for Aid drop down menu, select "Apply for Parent PLUS Loan"

3. Complete the Parent PLUS Master Promissory Note (MPN)*
If the credit check is approved, complete the Master Promissory Note (MPN) while still logged in to studentaid.gov. Make sure you are selecting the Parent PLUS MPN.

*If you have previously borrowed a Direct PLUS Loan for your current Union student, you do not need to complete a new MPN (Exception: 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 reason for denial along with instructions for either appealing the credit denial or adding an endorser to the loan. If you do not intend to do either, your student will be offered an additional Federal Direct Unsubsidized Loan.

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 ranging from $5,500 to $7,500 at a lower interest rate of 6.39% for the 2025-26 academic year. If you have filed a FAFSA and your student has not been offered a Federal Direct Student Loan, please contact the Financial Aid Office.

• The parent and dependent student must be U.S. citizens or eligible non-citizens.
• Loan approval is based on a credit review.
• The PLUS loan fixed interest rate is 8.94% effective July 1, 2025.
• The current PLUS loan has a 4.228% 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, contact the federal loan servicer assigned to your PLUS Loan. Deferment will not be approved until the first loan disbursement has been made.