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.
Am I eligible?
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.
- An endorser is someone who has a good credit history and agrees to repay the Parent PLUS Loan if you are unable to do so.
- You must be a U.S. citizen, U.S. National or a permanent resident of the United States.
- You must be the biological parent or an adoptive mother or father of your student. A step-parent is also eligible if his/her income and assets were provided on the FAFSA. If you are a legal guardian or grandparent, you are not eligible to apply for a Parent PLUS Loan.
How much should I borrow?
- The amount of the Parent PLUS Loan you may borrow is determined by your student’s estimated cost of attendance less any other awarded financial aid.
- ASU awards the maximum amount that you may borrow, however, you may choose to accept an amount lower than the maximum. You do not have to accept any of the PLUS loan and we encourage you to apply for only what you feel is necessary given your family’s financial situation.
- The amount you accept should reflect the amount you wish to borrow for your student’s actual period of enrollment. If your student is enrolled for the entire academic year (fall and spring), then the approved loan amount will be disbursed half in the fall and half in the spring. If your student is attending only one term, the approved loan amount will disburse in that semester.
- Always keep in mind that a parent loan may need to be borrowed for each year of undergraduate study, so plan carefully as payments increase whenever a new loan is fully disbursed.
What are the interest rates and fees on a Parent PLUS loan?
- The interest rate on Parent PLUS loans is fixed.
- The current interest rate for 2020–2021 is 5.30%.
- The interest rate is based on the 10 year treasury rate plus a fixed margin of 4.6%
- There is a 4.236% loan origination fee on all Parent PLUS Loans. This fee will be deducted from each disbursement.
The Parent PLUS Loan process
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.
- To start the process of applying for a Parent PLUS Loan you and your parents must complete a FAFSA.
- After ASU receives your FAFSA and you have completed all the items under your Priority Tasks on My ASU, you may be offered a Parent PLUS Loan.
- If you are graduating in the fall, you must apply for graduation and notify Financial Aid and Scholarship Services in writing that you plan to graduate and will only need your loan for one semester. If we are not notified, your loan will be split over the full year.
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.