The parent borrower must meet the following conditions:
- Their child must have a completed FAFSA with parent information for the appropriate school in which the loan will be originated
- Must be a U.S. Citizen, or
- U.S National, or
- A citizen of the Freely Associated States: The Federated State of Micronesia and the Republics of Palau and the Marshall Island, or
- An eligible noncitizen
Students must be enrolled at least half time to be considered for this loan. However, the loan is in the parent's name only. The Department of Education's Direct Loan Servicing Center is the holder of this loan when a parent enters into repayment.
Estimate how much you should borrow
Use the Parent Debt Calculator to get an estimate of how much you should borrow for your student's education based on your current income and debt load.
Interest, Repayment and Loan Origination Fee
While the student is attending school, the interest accumulates on this loan. The parent must either pay the interest on this loan quarterly to the Direct Loan Servicing Center or you let the interest accumulate and capitalize. Capitalized interest makes the loan payback more expensive over time.
No payment on the principal balance of the loan is necessary so long as the student remains half time (six credit hours undergraduate and five credit hours graduate). A deferment while the student is in school can be requested by completing the Direct PLUS Loan Request found on StudentLoans.gov.
Your student can get official verification of their enrollment to attach to the in-school deferment form by visiting the Enrollment Verification page.
The interest rate is fixed at 7.6% for Direct PLUS Loans first disbursed on or after July 1, 2018, and before July 1, 2019. For loans first disbursed on or after July 1, 2019, and before July 1, 2020, the interest rate is fixed at 7.08%. Yearly loan amounts the parent may borrow are dependent upon the student's credit hours enrolled per semester.
There is a 4.248% loan origination fee associated with this loan. The fee will be proportionally deducted from each loan disbursement.