The Parent PLUS Loan, a Federal Direct PLUS Loan, is an option for parents of undergraduate students to help pay for educational expenses. A parent who qualifies may receive a Parent PLUS Loan for the education costs of a dependent undergraduate student who meets the eligible student definition. You can find additional Parent PLUS Loan information at studentaid.gov.
As a parent of a dependent student, you may be eligible to borrow a Parent PLUS Loan as long as your student is a degree seeking student, enrolled for classes (at least half time) and meets financial aid satisfactory academic progress requirements.
Generally, you must have a good credit history to qualify. If your credit report indicates you are 90 days or more delinquent on any debt, are in default, have a bankruptcy, a foreclosure, a repossession, a tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Parent PLUS Loan unless you can obtain a credit worthy endorser.
ASU is not the lender of the Parent PLUS Loan, and does not approve or decline your eligibility. The federal government is the lender for all PLUS loans. Your credit worthiness is determined by the U.S. Department of Education. The U.S. Department of Education will not share or send your credit information to ASU. Questions about your ability to borrow should be directed to the lender.
Begin this process as early as possible to ensure coordination with tuition deadlines and timely disbursement of funds. See ASU's tuition deadlines calendar for details.
If you already granted your parent guest access to accept a Parent PLUS loan, proceed to the Accept Your Loan step.
Grant your parent guest access to accept a Parent PLUS loan by adding a guest on My ASU in the My ASU Parent Guest Access Permissions section. Be sure to specify your new guest as a parent AND grant access to the "Manage Parent PLUS Loans" privilege. For instructions on granting parent guest access, click here.
Who Can Be Considered Your Parent?
Your parent must be your biological or adoptive mother or father. A stepparent is also eligible to borrow a PLUS Loan if his/her income and assets were required on the FAFSA. Legal guardians or grandparents (unless they are your adoptive parent) are not eligible to be considered as parents for the PLUS loan process.
If you already have your parent guest access to accept a Parent PLUS loan, proceed to the Accept Your Loan step.
If your student is a fall/spring student, funds will be disbursed as a fall/spring loan (half in the fall and half in the spring). Your student is only eligible for a single disbursement loan if he/she is attending only one term.
There are some situations where payment can be deferred. It's important to remember that if you able to secure a deferment on your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For information on deferment, please contact your loan servicer.
A Parent PLUS Loan is like any other loan. You, the parent, must repay the loan even if your financial circumstances become difficult or if your student does not complete their education. Parent PLUS Loan payments begin 60 days after the loan is fully disbursed. There are some situations where payment can be deferred. It's important to remember that if you able to secure a deferment on your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For information on deferment, please contact your loan servicer.
Currently there are seven repayment plans offered for Parent PLUS loans:
Please contact your loan servicer to discuss which repayment plan works best for you.
A loan servicer is a company that takes care of the billing and other services on your Parent PLUS Loan. Your Parent PLUS Loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. The loan servicer will contact you to discuss the repayment plans available.
Federal PLUS Loans are subject to credit approval and may be denied. There are three options available to consider when a parent is credit-denied a Parent PLUS Loan.
Parents whose Parent PLUS loans are declined credit may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser or may appeal the declined credit decision by documenting extenuating circumstances. Please contact the U.S. Department of Education PLUS Credit Appeal line at 800-557-7394 or online at studentaid.gov.
If you have been denied a Parent PLUS loan and plan to endorse your Parent PLUS loan then you will be required to complete an Annual Student Loan Acknowledgment for Federal Student Loans. In order to complete the loan acknowledgement and ensure that your endorsed PLUS loan is sent to ASU go to Complete an Annual Student Loan Acknowledgment for Federal Student Loans.
NOTE: Effective March 29, 2015, federal regulations require any parent whose Parent PLUS loan was first denied credit and then subsequently approved (either with a creditworthy endorser or by documenting extenuating circumstances to the satisfaction of the Department of Education) must complete PLUS Credit Counseling.
You can complete PLUS Credit Counseling on studentaid.gov..
If you are unable to find a creditworthy endorser or appeal the denial of your credit decision, your student may request an additional Federal Direct Unsubsidized Loan. Your student can submit the Parent PLUS Loan Denial Funds Request form. There are specific limits on the amount of additional unsubsidized loans that may be awarded. The maximum annual amounts are $4,000 for freshmen and sophomores and $5,000 for juniors and seniors.