Federal Direct Parent PLUS

Federal Direct Parent PLUS Loan Overview

The Federal Direct Parent PLUS Loan is a federal loan available to eligible parents of dependent undergraduate students to help cover educational expenses not covered by other financial aid. A FAFSA is required before applying, and a credit check is performed during the application process. The parent borrower - not the student - is responsible for repayment. Interest begins accruing when the funds are first disbursed.

Parent Eligibility

You (the parent borrower) must be the biological or adoptive parent of the student for whom the Parent PLUS Loan is being borrowed. A stepparent may also be eligible to borrow if the stepparent’s income and assets were included on the student’s FAFSA. Multiple parents may borrow through the Parent PLUS Loan Program, provided the student’s total financial aid package does not exceed their cost of attendance.

The student must have a current official FAFSA on file and have received an award notification from our office or have had federal aid eligibility evaluated.

Both you and the student must meet the eligibility criteria for the Parent PLUS Loan, as well as the general eligibility requirements for federal student aid. These include:

1. You must be a U.S. citizen or eligible non-citizen
2. You must not be in default on a federal student loan nor owe money on a federal student grant
3. The student must be an eligible dependent undergraduate student who is enrolled at least half-time in an eligible program of study. Six credit hours is considered half-time enrollment for undergraduate students.
4. Parent PLUS Loan funds cannot disburse until the student begins attendance in eligible coursework and all federal requirements have been completed.
5. You (the parent borrower) must not have an adverse credit history. A credit check will be performed during the application process. If a parent is denied a Parent PLUS Loan due to adverse credit, the parent may obtain an endorser or appeal the credit decision. These options will be provided as part of the application process. If a parent is able to secure a Parent PLUS Loan after initially being denied for adverse credit, Parent PLUS Loan Credit Counseling is required. If a parent is unable to secure a Parent PLUS Loan, the undergraduate dependent student may be eligible for additional Federal Direct Unsubsidized Loan funds. Amounts vary depending on the student's academic level. Additional information is provided below.

Borrowing Limits for PLUS Loans

Parents may borrow up to the student’s cost of attendance minus other financial assistance received. If the requested loan amount exceeds the student’s eligibility, the loan will automatically be reduced to the maximum allowable amount. If the student’s financial aid package changes after the Parent PLUS Loan is awarded, the loan and/or other financial aid may be adjusted or canceled.

*The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, established new Parent PLUS Loan limits and created limited exception provisions for certain borrowers. Students and parents are encouraged to review guidance from the U.S. Department of Education and Federal Student Aid regarding aggregate loan limits, limited exceptions, interest rates, and repayment information.

How Parents Apply

Before you begin the application, ensure:

• The student has a FAFSA on file for the corresponding aid year
  • 2027-28 FAFSA for Fall 2027, Spring 2028, and Summer 2028
  • 2026-27 FAFSA for Fall 2026, Spring 2027, and Summer 2027
• The student has received their Financial Aid Award Notification from UofL for the corresponding term
• You are using your legal name exactly as it appears on your Social Security card
• The parent has an FSA ID

Application Process: Step-by-Step Guide

1. Navigate to https://studentaid.gov (Note: This is the U.S. Department of Education's official student loan website, which has a .gov extension. Do not use StudentLoans.com, which is a commercial website.).
2. Log In using your U.S. Department of Education FSA ID (user name and password).
   • If you do not already have an FSA ID, you will need to create an account/apply for one at https://studentaid.gov/fsa-id/
3. Select ‘PLUS Loans: Graduate PLUS and Parent PLUS’ under ‘Grants and Loans’ from the top menu bar
4. Select 'Learn More’ next to ‘I am a Parent of a Student’ and then select ‘Start’ next to ‘I am a Parent of an Undergraduate Student’
5. Select an Award Year
   • For Summer 2026, choose Award Year = 2025-2026
     • Applications for the upcoming summer term generally become available through Federal Student Aid after mid-April
   • For Fall 2026, Spring 2027, or Summer 2027, choose Award Year = 2026-2027
     • Applications for the upcoming academic year generally become available through Federal Student Aid beginning in June.
6. Complete the Student Information section
7. Complete the School and Loan Information section
   • In the School Name section, be sure to select the University of Louisville.
8. Complete the Loan Period section and select the appropriate loan period start and end dates.  After the last day of enrollment for the period requested, our office cannot certify a Parent PLUS Loan Request. 
   • For Summer 2026, Select May 2026 as the Requested Loan Period Start Date and August 2026 as the Requested Loan Period End Date (application opens mid-April)
   • For Academic Year 2026-2027, select August 2026 as the Requested Loan Period Start Date and April 2027 as the Requested Loan Period End Date
9. Complete the credit check, and the results of your credit check will be available immediately. 
   • Credit decisions are made by the U.S. Department of Education, not the University of Louisville.

Credit Check Results:

• If your credit is approved, you will be given two options:
  1. Decline to continue with the application process, or
  2. Continue and complete a Parent PLUS Loan Master Promissory Note (MPN), if you have not already completed one.
• If your credit is not approved, you will be given the following three options:
  1. Not pursue the loan and have the student request an evaluation for additional Federal Direct Unsubsidized Loan funds through our office; 
  2. Obtain an endorser and complete Parent PLUS Loan Credit Counseling; or
  3. Appeal the credit decision with the U.S. Department of Education. The Student Financial Aid Office recommends reviewing the Department of Education’s Appeal Credit Decision Demo, which includes information regarding documentation requirements and the appeal process. Appeals generally require documentation satisfactory to the U.S. Department of Education that:
     • The information causing the adverse credit decision is incorrect; or
     • There are extenuating circumstances relating to the adverse credit history.
     • If your credit appeal is approved, you must complete Parent PLUS Loan Credit Counseling before the loan can be originated.

Application Tips & Processing Information:

• Credit Checks: Credit checks are only valid for 180 days.  
  • It is best not to complete your Parent PLUS Loan Request until less than 60 days prior to the student's planned start date of enrollment. We begin processing Parent PLUS Loan Requests for the fall and spring terms approximately two months prior to the start of the terms, after the student’s federal aid eligibility has been assessed. We continue to process Parent PLUS Loan Requests until our office's published deadlines, which never exceed the end of the student's enrollment period.
• Adding an Endorser to your loan application: The Student Financial Aid Office recommends that borrowers refer to the Department of Education's Endorser Addendum Demo in preparation for completion of the Endorser Addendum
• Additional Unsubsidized Loan Eligibility: If you do not pass the credit check, the student may be eligible for additional Federal Direct Unsubsidized Loan funds.
  • If the student wants to request additional Unsubsidized Loan funds, the student must complete the Request for Additional Direct Unsubsidized Loan form.
• Non-Citizen Documentation: If you are an eligible non-citizen, you must submit documentation to confirm your citizenship status to the Student Financial Aid Office. 
  • Copy both sides of your valid eligible non-citizenship documentation, write "Parent PLUS Loan", the student's name, and UofL ID on the copies, and provide to the Student Financial Aid Office. 
• Paper Applications: You may contact our office to receive a paper version of the Parent PLUS Loan application. 
  • The paper application requires additional processing time, and you will not know the credit check results until your application is processed.
• Processing Timelines: Processing may take up to 14 business days.
  • Loan processing times may vary depending on application volume and completion of all required federal requirements. After a parent applies and is approved for Parent PLUS Loan funds, the Student Financial Aid Office will review the student’s account and determine final eligibility. If eligible, the loan will be awarded based on the requested amount, not to exceed the maximum calculated eligibility. 
  • Students should monitor their ULink To Do List and financial aid information regularly for updates or additional requirements.
• Recommended Completion Dates: To help ensure Parent PLUS Loan funds are available during the student’s enrollment period, families are encouraged to complete all required Parent PLUS Loan steps by the following recommended dates:
  • Fall Semester: November 1
  • Spring Semester: April 1
  • Summer Semester: June 30

Meeting the recommended completion date means all Parent PLUS Loan requirements must be fully completed by that time, including:

• Submission of the Parent PLUS Loan application
• Successful completion of the credit check
• Completion of the Parent PLUS Loan Master Promissory Note (MPN), if required
• Completion of any required Parent PLUS Loan Credit Counseling
• Confirmation of the student’s enrollment and federal aid eligibility requirements

Delays in completing any required step may impact the timely disbursement of Parent PLUS Loan funds to the student account.

Common Issues and Processing Delays:

Parent PLUS Loan requests may take up to 14 business days to process after all required application steps and federal eligibility reviews have been completed. Several common issues may delay Parent PLUS Loan processing. 

• FSA ID Accuracy: You must sign in with the parent’s FSA ID. 
  • Using the student's ID is one of the most common reasons applications fail to link correctly.
• Credit Status: Your credit cannot be frozen. If you have a credit freeze with any of the major bureaus, you must lift it temporarily before applying so the Department of Education can perform the required credit check.
  • Tip: If you do have your credit frozen, it’s usually best to unfreeze it for a 48-hour window starting the day you plan to apply. It’s much easier than dealing with a rejected application and having to re-trigger the manual check later.
• Correct Award Year: Selecting the incorrect award year or school may also delay processing and may require a new application.
  • Select 2025–2026 for Summer 2026.
  • Select 2026–2027 for Fall 2026 or Spring 2027.
• School Selection: Double-check that the University of Louisville is selected. 
  • An error here often requires a completely new application.
• Enrollment Minimums: The student must be enrolled at least half-time at the time of disbursement, or the funds will not be released. 
  • Six hours is considered half-time enrollment for undergraduate students.

Exemption for Exceptional Circumstances

If a student's parent cannot process a PLUS loan due to exceptional circumstances, an exemption may be requested. Exceptional circumstances 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.
• The parent's income is limited to public assistance or disability benefits and our office has 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 exceptional circumstances should be considered, the student and parent may complete the Exemption Request Form (adobe pdf).

Parent PLUS Loan Increase

Parents who have already been approved for a Parent PLUS Loan may request an increase if additional funding is needed and the student still has remaining eligibility within the cost of attendance. The total amount borrowed, including any increase, cannot exceed the student’s cost of attendance minus other financial aid.

• If the parent originally requested the maximum loan amount and the loan was later reduced because of changes to the student’s cost of attendance or other financial aid, an increase may be processed if later adjustments result in remaining unmet eligibility. In this situation, the parent borrower may request an increase by submitting a signed statement from the parent borrower to the Student Financial Aid Office or email from the email address the parent submitted at studentaid.gov, provided the original credit check remains valid.
• If the parent originally requested a specific dollar amount and the requested increase does not exceed the original approved amount, the increase may also be processed with a signed statement from the parent borrower or email from the email address the parent submitted at studentaid.gov as long as the credit check remains valid.
• If the requested increase exceeds the original approved loan amount, or if the original credit check has expired, the parent must complete a new Parent PLUS Loan application through the Federal Student Aid website. The parent must apply using their own FSA ID and password. Credit checks remain valid for 180 days from the approval date.

Submit your signed increase request via the UofL Financial Aid Document Upload or directly to the office in the Houchens Building. If the document upload checklist is not available on the student’s account, please contact the Student Financial Aid Office to have that checklist added. Increase requests must be submitted within the same academic year and before the end of the loan period. The student must continue to meet enrollment and eligibility requirements for the increase to be approved.

Refunds

Refunds are processed by the Bursar’s Office according to university refund procedures and timelines. Once the student begins enrollment for the loan period and eligibility is re-confirmed, Parent PLUS Loan funds will be applied to the student’s university charges through the Bursar’s Office. If the Parent PLUS Loan results in a credit balance after all university charges have been paid, any remaining funds will be refunded to the parent borrower unless authorization has been provided for the funds to be released to the student.

Repayment Information

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 once the loan is fully disbursed. However, a parent may apply for deferment by contacting the Direct Loan Servicing Center at 800-557-7394 while the parent/child is attending at least half-time in an eligible program of study and for an additional six months after the child ceases to be enrolled at least half-time.

Do you have additional questions regarding Federal Direct Parent PLUS Loans?

Additional information regarding Parent PLUS Loans, including interest rates, repayment options, deferment, and borrower rights and responsibilities, is available through the following federal resources:

U.S. Department of Education, Office of Federal Student Aid, Federal Direct Parent PLUS Loans
https://studentaid.gov/understand-aid/types/loans/plus/parent

U.S. Department of Education, Federal Student Aid
https://studentaid.gov/