PLUS Loans
The Federal Direct Parent PLUS Loan is a credit-based loan available to parents of dependent undergraduate students who are enrolled at least half-time (6 credits) in a degree-seeking program.
Key details include:
- Interest Rate: For loans first disbursed between July 1, 2025, and June 30, 2026, the fixed interest rate is 8.94%.
- Loan Origination Fee: 4.228%
- Repayment Options: Borrowers can defer repayment until 6 months after the student graduates, withdraws, or drops below half-time enrollment.
- For more information please visit the US Department of Education’s website.
When do I begin the PLUS loan process?
Parents of dependent undergraduate students can begin applying for the Federal Direct Parent PLUS Loan for the upcoming academic year once the application period opens each year around early April. We strongly recommend that borrowers apply as early as possible and meet all stated deadlines to ensure that funds are available in time for tuition and fee payments.
How do I apply for the PLUS loan?
- File the FAFSA:
To start the PLUS loan process, the student must file a FAFSA (or renewal FAFSA) for the applicable academic year. - Submit the PLUS Request:
The parent borrower can log in to the U.S. Department of Education’s studentloans.gov website to complete the PLUS loan request. Applicants must have a FAFSA ID to log in. - Complete the Master Promissory Note (MPN):
If the PLUS loan is approved, the borrower must complete a PLUS Loan Master Promissory Note (MPN) on studentloans.gov. - Eligibility Requirements:
- Must be the student’s biological (including non-custodial), adoptive, or step-parent
- Must be a U.S. citizen or eligible non-citizen (e.g. Permanent Resident)
- Processing Timeline:
- Delaware State University can view the completed application within 24 hours of submission.
- All approved PLUS loans are typically processed within 10 business days, but during peak processing times, loans may take up to 15 business days.
How much can I borrow?
The maximum amount a parent may borrow for the academic year is the difference between the student’s cost of attendance (tuition, fees, housing and food, books, etc.) and the financial aid the student is already receiving. When applying before the full financial aid package is determined, it is recommended to request the maximum amount. If the student later receives additional aid, loan disbursements may be reduced or canceled to avoid exceeding the student’s cost of attendance.
Parents may also choose to borrow a specific amount instead of the maximum. The requested amount will be processed for the academic year, and a loan origination fee (4.228%) will be deducted from each semester’s disbursement.
How do I request an increase in the PLUS loan?
To request an increase in an approved PLUS loan, complete the PLUS Increase at Studentaid.gov at “Apply for a PLUS Loan for Parents.”
Please note: An increase cannot be processed if:
- The student has already received a financial aid package that reaches the maximum cost of attendance.
- The PLUS loan was approved with a co-signer; in this case, the borrower must reapply for a new loan, and the co-signer must re-sign the application.
- The first disbursement of the PLUS loan has already been applied to the student’s account.
What are my options if I am denied for a PLUS loan?
If the loan is denied due to adverse credit, the borrower has several options:
- Reapply utilizing an endorser
- The other parent can apply utilizing their information to possibly obtain an approved response
- You may allow your student to be awarded the additional Federal Direct Unsubsidized Stafford Loan
- Request an appeal of the denial with the Department of Education.
- The additional Unsubsidized Federal Direct Loan fund varies: freshmen and sophomores (up to 59 earned credit hours) can borrow up to $4,000 per year. Juniors and seniors (60 or more earned credit hours) can borrow up to $5,000 per year.