Federal Direct PLUS Loans

The Federal Direct PLUS Loan program (PLUS) makes loans available to parents of dependent students. Loan funds received must be used to assist with paying educational costs. such as tuition, laptop fees, housing and personal expenses, books and supplies.

The Federal Direct PLUS Loan is a federally insured fixed rate loan for parents who have been approved after a credit check is preformed regardless of income or assets. The interest rate for 2017-2018 is 7.00%. New federal regulations tie the interest rates to market interest rates. The interest rates on new loans are fixed for the life of the loan; however, every July 1, each year’s new loans will have different fixed rates based on the current market rates. In addition to interest, you will also pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive.

Parents may borrow up to the cost of education minus any other financial aid the student has already received. Direct PLUS Loans are scheduled to go into repayment 60 days after the loan’s final disbursement but the parent borrower can contact the loan servicer to request deferment of payments until six months after the student ceases at least half-time enrollment. Interest will accrue during the time the student is in school; however, payments to interest and/or principal can be paid during that time without penalty.

To receive the Federal Direct PLUS Loan:

Complete the FAFSA


Determine Federal Direct PLUS Loan Eligibility Amount

Loan Calculator

Complete Application process and sign promissory note

Apply for loan

  • Sign in to “Manage My Direct Loan”
  • Click “Start PLUS Application Process”
  • Click “Parent PLUS”
  • Click “Complete Master Promissory Note”
  • In order to apply for a Direct Parent PLUS Loan or sign the Direct PLUS Loan Master Promissory Note online, you must set up a FSA ID.
  • This loan is in the parent’s name and can never be transferred to the student’s name.
  • Review Your PLUS Loan History:  National Student Loan Database System As a Parent loan borrower, you will also be able to review your PLUS loan history online at the National Student Loan Database System.  Here, you can access your payment information, find your lender’s/servicer’s contact information, and review your rights and responsibilities.

To receive an additional Direct Loan from a PLUS Loan denial

Each school year, parents with poor credit may complete the PLUS Request Process online. If denied, students may receive an additional Federal Direct Unsubsidized Loan ($4,000 for freshmen and sophomores and $5,000 for juniors and seniors). MSOE will apply the additional Direct Unsubsidized Loan automatically to the student’s account. If the student does not want the additional amount, the student can contact the MSOE Financial Aid Office via email at finaid@msoe.edu to decline the loan.

More about Federal Direct PLUS Loans

Contact Us

Financial Aid Office


(800) 778-7223

Student Accounts Office


(800) 886-6763

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