Federal Parent PLUS Loans FAQs for Students and Parents

Parent PLUS Loans are unsubsidized federal loans that parents of dependent undergraduate students can use to help pay for educational expenses not covered by other financial aid.

Some of the benefits of a Parent PLUS Loan include:

• A fixed interest rate
• Can borrow amounts up to cost of attendance minus any other financial aid received
• Flexible repayment options

• Parents and students must be U.S. citizens or eligible noncitizens and must not be in default on any federal loan or owe an overpayment on a federal grant. 
• The parent must be the student’s biological or adoptive parent or the student’s stepparent if the biological or adoptive parent has remarried at the time of the application.
• Neither parent nor endorser can have an adverse credit history.
• The student must be under age 24, unmarried and have no legal dependents at the time of submitting the FAFSA (exceptions apply).
• The student must be enrolled at least half time.
• Parents and students must meet the general eligibility requirements (see https://studentaid.gov/understand-aid/eligibility) for federal student aid.

• What if my parent gets denied for the Parent PLUS Loan? If a Parent Plus loan is denied, parents have the option of seeking a co-signer/endorser at www.studentaid.gov. The parent may also contact Student Loan Support Center at 1-800-557-7394 for reconsideration of the initial Plus loan denial. Out-of-state students are strongly encouraged to have a parent contact the Student Loan Support Center to be reconsidered for the initial Plus Loan denial.
• The student becomes eligible to receive additional unsubsidized loan funds based on classification and eligibility for the current academic year. Credit denials are valid for an entire academic year. A parent may re-apply for a subsequent academic year, and if approved, the student will be eligible for a Parent PLUS Loan and not additional unsubsidized loans in the subsequent academic year.

A parent can borrow up to the student’s cost of attendance minus any other financial assistance received (see https://studentaid.gov/help-center/answers/article/what-does-cost-of-attendance-mean).

Loans disbursed between July 1, 2022, and before July 1, 2023, have a fixed interest rate of 7.54%. Loans disbursed between July 1, 2021, and before June 30, 2022, will have a fixed interest rate of 6.28%.

Yes, there is a 4.228% loan origination fee on all Parent PLUS Loans first disbursed on or after Oct. 1, 2020. The fee will be proportionately deducted from each loan disbursement.

The parent whose information is listed on the FAFSA will be the one who will apply for the Parent PLUS Loan. If the biological parent, adoptive parent or step-parent is not listed on the FAFSA, the student must confirm their parental relationship.

After the dependent student has completed the FAFSA, the parent can apply for a Parent PLUS Loan online at https://studentaid.gov/plus-app/. The parent will need to reapply for the Parent PLUS Loan each new academic year.

Yes. A new application is required for each dependent student.

If eligible to receive the Parent PLUS Loan, the parent must complete and sign a Parent PLUS Master Promissory Note (MPN). This is located at https://studentaid.gov/mpn/.

NCCU will first apply the Parent PLUS Loan funds to the student’s account to pay for tuition, fees, room and board, and other school charges. Any loan funds that remain will be mailed to you in the form of a check to help you pay for any additional education expenses, or you may choose to have the loan funds given to the student.

No. A Parent PLUS Loan made to a parent cannot be transferred to the child. The parent is responsible for repaying the loan.

The Parent PLUS Loan enters repayment once the loan is fully disbursed. Parents can request a deferment if their child is still enrolled at least half-time or for an additional 6 months after their child ceases to be enrolled at least half-time. Please note, if a loan is deferred, interest will accrue during the deferment.

There are several repayment plans that are available. These plans are based on individual needs and can be found at https://studentaid.gov/understand-aid/types/loans/plus.

Additional information regarding Parent PLUS Loans can be found on the following pages:

• https://studentaid.gov/understand-aid/types/loans/plus
• https://studentaid.gov/plus-app/
• https://studentaid.gov/sites/default/files/direct-loan-basics-parents.pdf