Your parents can take out a Direct PLUS Loan to help pay for your school expenses if you’re considered a dependent student. You’re not required to have financial need for your parents to receive a loan. However, your parents must have good credit to qualify for a loan.
New loans disbursed between July 1, 2023 and June 20, 2024 have a fixed interest rate of 8.05%. There’s also a loan fee of 4.228% of the loan amount.
Your parents are charged interest on the loan as soon as you receive the first payment. They can pay the interest while you're in school or add it to the principal. Adding it to the principal substantially increases the total amount that they’ll repay on the loan.
Special Announcement: Interest Rates for New Direct Loans
Interest and fees for PLUS loans
| Fixed interest rate (for 7/1/24 - 6/30/25) |
Loan fee (from 10/1/23 - 9/30/25) |
|---|---|
| 9.083% | 4.228% of the total loan |
How to apply
To apply for a Direct PLUS Loan, you must:
- Fill out the Free Application for Federal Student Aid (FAFSA).
- Fill out, with your parent(s), the Direct PLUS Loan Application.
- Register for at least six credit hours in a program that’s eligible for financial aid.
More information about Direct PLUS Loans is available at Direct PLUS Loans for Parents, a website from the federal government.