Direct Parent PLUS 11-12
The Direct Parent Loan for Undergraduate Students (PLUS) is designed to assist the parents of dependent undergraduate students enrolled at least half-time in meeting educational expenses. There are no income restrictions that affect eligibility for this loan. However, the parent borrower must pass a credit check. A completed current year Free Application for Federal Student Aid (FAFSA) must be on file for the student before a Parent PLUS loan can be processed. A parent may borrow up to the full cost of educational for expenses for the student including tuition and fees, room and board, books and supplies, transportation and living allowance, less any other financial aid the student receives.
Eligibility: Students must be citizens or permanent residents of the United States and be enrolled or accepted for enrollment in a degree-seeking program at the University of Louisville. Students must be enrolled at least half-time (six hours) in order for the parent borrower to be eligible for a Federal Parent PLUS loan. In order to receive financial aid, including the Direct Parent Loan, students must be maintaining Satisfactory Academic Progress (SAP). Parents must also be citizens or permanent residents. To borrow a PLUS loan for a student, the parent must be the student’s biological or adoptive mother or father. Both parents may get a PLUS loan as long as the total aid package does not exceed the student’s cost of attendance. A stepparent is also eligible to borrow a PLUS loan if her income and assets would be taken into account when calculating the dependent student’s EFC.
Repayment, Interest Rates and Fees: A Parent PLUS Loan is borrowed by the parent, not the student. Responsibility for repayment rests with the parent. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Repayment begins within 60 days after the final loan disbursement. However, a parent may apply for an in-school deferment by contacting the Direct Loan Servicing Center at 800-848- 0979 while the student is attending at least half-time in a degree program. For more information regarding Direct Parent PLUS loans, such as interest rates, repayment, and more please visit http://studentaid.ed.gov.
Steps for Applying for a Federal Direct Parent PLUS Loan:
You must file a FAFSA and have received an award notification from our office. Our office does not include the Parent PLUS loan in the initial awarding of federal aid. Once you have received an award notice of your federal aid eligibility, your parent can initiate the Parent PLUS Loan process.
Make sure that the parent borrower has a Federal PIN. If not, they will need to apply for one through www.pin.ed.gov.
Parents must sign a MPN for their loans. Your parent may eSign (electronically sign) the MPN using their Department of Education PIN. This is the same PIN they used to sign your FAFSA electronically. If misplaced, your parent may register for a new PIN. If your parent is a first time Direct PLUS Borrower, they must complete a Master Promissory Note at https://studentloans.gov. Please note that if your parent previously borrowed from a FFEL lender/bank, they will need a new MPN with Direct Loans.
As part of the application process, a credit check must be completed. If a parent does not pass the credit check, they will receive an endorser application. The parent still might be able to receive a PLUS loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse their loan. The loan will be canceled if the endorser option is not completed within 30 days of the loan being denied. However, if an endorser is not an option for them, our office will review your eligibility for an extended Federal Unsubsidized Stafford Loan. For further information regarding the Parent PLUS credit decision, parents can call the Direct Loan Customer Service Center toll-free at 800-557-7394.
Once your parent completes the MPN process, please contact our office in order to be issued a Parent PLUS Request Form. You must be enrolled at least half-time in a U of L eligible undergraduate degree program for the funds to disburse to your account. Half-time for undergraduates is 6 hours.
Once we receive the funds and confirm eligibility, the funds will be posted to the students account at the Bursar's Office. Parent PLUS funds are always applied/re-applied towards the student's charges. If the Parent PLUS proceeds exceed the student's charges, the university's Bursar's Office will mail a check to the parents' mailing address (as listed on the Federal Parent PLUS Request form).
- Dependent students may be eligible for additional unsubsidized loan amounts if the student can document exceptional circumstances which prevent a parent from borrowing a PLUS loan. Exceptional circumstance may include:
- The parent is incarcerated.
- The parent has filed for bankruptcy and has provided a letter from the bankruptcy court stating that as a condition of the bankruptcy filing, the parent may not incur any additional debt.
- That parent's income is limited to public assistance or disability benefits and you have documented that the parent would not be able to repay the PLUS loan.
- The parent of a dependent student is not a U.S. citizen or permanent resident, or is not able to provide evidence from the U.S. Citizenship and Immigration Service that he or she is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident.
- If a student's parent cannot process a PLUS loan due to one of these exceptional circumstances, please complete the Direct PLUS Denial Exemption Form (adobe pdf).