Direct PLUS Loans
Direct PLUS Loans are federal student loans that parents of dependent undergraduate students and graduate or professional degree students can use to help pay for education expenses. These loans are part of the William D. Ford Federal Direct Loan Program. Here’s how to apply for a Direct PLUS Loan:
- To qualify for a Direct PLUS Loan, you (the borrower) must be a parent of a dependent undergraduate student. A graduate student, or a professional degree student.
- You should not have an adverse credit history. If you have adverse credit, you may still be eligible with an endorser (cosigner). Or by demonstrating extenuating circumstances.
Complete the Free Application for Federal Student Aid (FAFSA):
- Before applying for a PLUS Loan, the student and parent or graduate student should complete the FAFSA to determine eligibility for other federal financial aid. Such as Direct Subsidized and Unsubsidized Loans.
- Visit the official U.S. Department of Education website at StudentAid.gov.
- Log in using your FSA ID (the same ID used to sign the FAFSA).
- Select “Apply for a PLUS Loan” and then “Direct PLUS Loan Request for Parent Borrowers” or “Direct PLUS Loan Request for Graduate/Professional Students.”
Complete the Application:
- Fill out the online application, providing your personal and financial information.
- Specify the loan period and the loan amount you want to borrow. You can borrow up to the cost of attendance minus any other financial aid received.
- The Department of Education will perform a credit check during the application process. If you have an adverse credit history but have an endorser (cosigner), they will also undergo a credit check.
- If you are denied due to credit reasons, you have the option to appeal the decision or secure an endorser.
Sign a Master Promissory Note (MPN):
If approved, you will need to sign a Master Promissory Note (MPN). This is a legal document that outlines the terms and conditions of the loan.
Complete Entrance Counseling (For Graduate/Professional Students):
Graduate or professional degree students may need to complete entrance counseling, which provides information about the loan and your responsibilities.
- The loan funds will be disbursed directly to the school to cover tuition and other eligible education expenses.
It’s essential to keep in mind that Direct PLUS Loans have an interest rate and fees associated with them. Repayment typically begins shortly after the final disbursement. Parents, graduate students, and professional students should carefully consider their ability to repay the loan. Explore other financial aid options before taking out a PLUS Loan.
Contact Direct PLUS loans
If you need to contact the U.S. Department of Education regarding Direct PLUS Loans. Or have questions about your application, loan status, repayment, or other related matters. You can reach out to the Federal Student Aid Information Center.
Here’s how to contact them:
Federal Student Aid Information Center:
- Phone: You can call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). TTY users can dial 1-800-730-8913.
- Online: You can visit the Federal Student Aid website at StudentAid.gov and use the “Contact Us” page to send inquiries or find answers to common questions.
- Mail: You can write to them at the following address: Federal Student Aid P.O. Box 84 Washington, DC 20044
When contacting them, be sure to have your FSA ID and relevant loan information ready to assist in the resolution of your issue or inquiry.
Please note that the contact information mentioned here is as of my last knowledge. Contact information may change, so I recommend verifying the details on the official Federal Student Aid website. Or through the U.S. Department of Education’s official communication channels for the most up-to-date information.
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