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Federal Direct Parent (Plus) Loans

Federal regulations require you and your parent to complete the Free Application for Federal Student Aid (FAFSA) before applying for a Federal Direct PLUS Loan. 


IMPORTANT NOTE: It is our firm belief that families should borrow only when absolutely necessary, and then only to the extent that is needed. We encourage that serious and deliberate consideration be given to making any borrowing decision.

ELIGIBILITY CRITERIA

  • Student and Parent must meet federal eligibility requirements for federal student aid
  • Parent borrower must pass the credit check
  • Initiate process at studentaid.gov using your FSA ID to login
  • Under "Loans and Grants," Click on "Master Promissory Note (MPN) and complete the MPN for Parent of an Undergraduate.
    • Completion of MPN only required once
  • Under "Loan and Grants," click on "Plus Loans: Grad Plus and Parent Plus" then select Parent of a student. 
    • PLUS Loan application required each aid year
  • If the Parent borrower does not pass the credit check, two options are available
    • Endorse a PLUS Loan
    • Appeal a Credit Decision
    • If either option is used then PLUS Credit Counseling is required 

INTEREST RATES AND FEES

  • Effective July 1, 2022 – June 30, 2023 the interest rate = 7.543%
  • Origination fee = 4.228%, deducted at each disbursement

ANNUAL LOAN LIMITS

  • Annual limit is equal to your cost of attendance minus all other financial assistance

REPAYMENT

  • Parent borrowers have repayment options
    • 60 days after the loan is fully disbursed
    • Six months after the student ceases to be enrolled at least half-time enrollment status
  • Interest on the loan begins to accrue after the loan is fully disbursed

DISBURSEMENT

  • Funds normally disbursed in two equal payments
  • Credited directly to the student’s Vanderbilt Student Account