Federal Parent PLUS Loan

Parents and/or step-parents of undergraduate dependent students may utilize the Federal Direct Parent PLUS Loan to assist in paying the student’s educational expenses.  Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible.  The maximum amount available for the year is shown on the student’s Official Offer of Award as the “Maximum Parent PLUS or Alternative Loan” option.

Interest Rate and Processing Fees:

  • 8.05% fixed interest rate for loans disbursed between July 1, 2023 and June 30, 2024
  • 4.228% origination rate for loans disbursed on or after October 1, 2023 and before October 1, 2024

Applying for the Federal Direct Parent PLUS Loan:

To apply:

Steps to complete the online PLUS application:

  • The parent borrower must sign in to https://studentaid.gov/app/launchPLUS.action?plusType=parentPlus with their FSA ID.
  • Once signed in, select Apply for Parent PLUS Loan.
  • Select Parent PLUS for the loan type.
  • Fully complete the application and submit it.  Make sure to select the correct aid year. 
  • Once submitted, you will receive notification immediately of your approval or denial.
  • Next, complete the Parent PLUS Master Promissory Note (MPN) at the same website, https://studentaid.gov/app/launchMpn.action?mpnType=parentPlusMpn.  Make sure to complete all 4 steps and receive notice that your MPN is successfully submitted.  Print a copy of the MPN for your records.

Both application methods will generate a credit check on the parent who is applying for the loan. The credit check is valid for 180 days.

If your parent’s application is denied due to adverse credit history, contact the LSSU Financial Aid Office to discuss your options.  Beginning March 29, 2015, PLUS loan counseling will be required if you are determined to have adverse credit history, but qualify for a PLUS loan by documenting extenuating circumstances or obtaining an endorser.  This can be completed at https://studentaid.gov/app/counselingInstructions.action?counselingType=plus.

Please note: PLUS Loan applications must be completed every year as part of the Federal Student Aid Application process.


The approved loan (less fees) will disburse to the student’s account after all steps are completed. Please allow 10 days for processing. If the approved loan is for the full academic year, it will be divided in half, with 50% of the loan disbursing in the fall and 50% in January.

Deferment and Repayment

Repayment begins on the PLUS loan immediately after the loan is fully disbursed.  Parent borrowers may contact their loan servicer to request a deferment while the dependent student is enrolled at least half time and for an additional six months after the student ceases to be enrolled at least half time. Parent borrowers can also select the deferment option during the on-line application; however, this may not automatically defer the payments.

Disclosure Statements

Sample disclosures for PLUS loans:

ATTN: Due to the processing time, loan requests cannot be honored during the last two weeks of the semester. Please submit any requests for alternative or direct loans to the LSSU Financial Aid Office before the last two weeks of the semester.