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. (i.e. tuition, laptop fees, housing/personal expenses, books and supplies, etc.)
Determine if the Direct PLUS Loan is Right for You
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 is fixed at 7.9%. 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.
This loan is in the parent's name and can never be transferred to the student's name.
Complete the FAFSA
To receive the Federal Direct PLUS Loan, MSOE requires students to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA application can be completed online at www.fafsa.gov.
Federal Direct PLUS Loan Application Process
- Determine Federal Direct PLUS Loan Eligibility Amount
Please determine loan eligibility amount for the school year by using the
MSOE Direct PLUS Loan eligibility calculator.
~ THEN ~
- Complete the PLUS Request Process and sign your Federal Direct PLUS Loan Master Promissory Note online:
- Sign in to "Manage My Direct Loan"
- Click "Start PLUS Application Process"
- Click "Parent PLUS"
- Click "Complete Master Promissory Note"
Note: in order to sign the Direct PLUS Loan Master Promissory Note for the Federal Direct Parent PLUS Loan online, you must have received a PIN from the U.S. Department of Education.
~OR~
- Complete your PLUS Loan Master Promissory Note via Paper
To receive a paper PLUS loan application without completing the Federal Direct PLUS Loan Master Promissory Note online, please fill out the online PLUS Loan Request Form and mail the form to the MSOE Financial Aid Office.
Students: to Receive Additional Direct Loan from a PLUS Loan Denial
Each school year, parents with poor credit may complete the PLUS Request Process online or mail the PLUS Loan Request Form authorizing MSOE to run a credit check. If denied, students will 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.
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.