Federal Direct PLUS (Parent) Loan

A Student Sitting at Fountain

NOTE: student must be awarded financial aid before application can be processed.

Deadline dates to submit application:

  • December 1, 2015, for students attending fall 2015, only.
  • April 29, 2016, for students attending fall 2015 and spring 2016, or attending spring 2016, only.

The Direct PLUS (Parent) Loan is available to parents of dependent, undergraduate students who are attending at least half-time (6 units) each semester, and who have received a financial aid award. 

Parents may borrow up to the Cost of Attendance (budget) minus other financial aid the student is awarded.

A credit check is processed within 5 business days when a PLUS (Parent) loan application is received. 

Direct PLUS (Parent) Loan Application Process:

Step 1: Student must have completed a FAFSA, must have submitted the requested documents on their MySJSU to-do list, and have a Financial Aid award.

Step 2: Submit the 2015-16 Direct PLUS (Parent) application to the Financial Aid and Scholarship Office (FASO).

Step 3: Once the Direct PLUS Loan application is received, information is forwarded electronically to the Direct Loan Processor for a credit check. FASO will receive an electronic notice of approval or denial from the U.S. Dept. of Education. Click credit denial for more information. 

Step 4: FASO will electronically certify your loan eligibility and the amount you may borrow based on your student's financial aid award.

Step 5: A message will be sent to the student's MySJSU directing the parent on-line to sign the PLUS Master Promissory Note (MPN), if required. PLUS Loan counseling is required if the parent has an adverse credit history, and is strongly encouraged (optional) for all parent borrowers.

Enrollment Requirements

Students must be continuously enrolled in at least six units (half-time enrollment) each semester as an undergraduate to receive the loan. If the student drops below half-time enrollment at any time during the loan period, and/or if the student has not received satisfactory grades for the minimum number of units required, he/she may not be eligible for the loan proceeds the subsequent semester.

Interest Rate

2015-16 @ 6.84%

2014-15 @ 7.21%

The Direct Loan interest rates for loans first disbursed between July 1, 2013 and June 30, 2014 are fixed. Under the new interest rate structure, all Direct Loans, except Direct Consolidation loans, will be "variable-fixed," meaning parents would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. There is also interest rate cap at 10.50% for parent PLUS loan.

Interest rates are calculated using a base 10-year Treasury Note Index of 1.81% plus an add-on amount for each loan program - 4.60% for parent PLUS loan.

Origination Fee

  • For loans disbursed between October 1, 2014 and September 30, 2015, the origination fee is 4.292%.
  • For loans disbursed after October 1, 2015, the origination fee is 4.272%

The origination fee is subtracted from the amount borrowed.

Disbursement of Funds

Disbursement of funds begins the first week of each semester. Academic year PLUS loans are disbursed to student's account in two equal installments - fall and spring. Financial Aid funds are applied towards any current outstanding debt owed to the university (i.e., tuition, campus fees, etc.). Remaining funds, if any, are refunded to the parent by the Bursar's Office. View the Bursar's Office Refund process for more information.

Borrowing Guidelines

We strongly encourage all PLUS loan borrowers to use a repayment calculator to know the effects of loan indebtedness and estimate monthly payments ahead of time. 

The amount listed on the award letter is the maximum amount available*, but we encourage you to only borrow what is needed. The PLUS loan application will not be processed if a dollar amount is not listed.

*If federal work study is offered as part of the award package, you can add the offered amount to the PLUS loan amount. In this case, however, the federal work study will be cancelled. 

Repayment Information

The loan service provider will contact borrowers with regular updates on the status of your Direct PLUS loan and will provide you with information on how and when to repay your loan. Repayments generally begin 30-60 days after the second disbursement.

The Delayed Repayment Option: If requested, repayment can be delayed to begin six months after your student graduates or drops below half-time. You must request this by contacting the Direct Loan Service provider.

If a parent borrower is not a U.S. citizen or Permanent Resident Alien

If the parent borrower is not a U.S. citizen or permanent resident alien, they are encouraged to fill out the PLUS application. The application will be processed and your student may have access to more unsubsidized loans.

The student's eligibility is limited by grade level: $4,000 maximum for freshman/sophomore; $5,000 maximum for junior/senior. A new credit application must be processed each academic year to remain eligible for additional unsubsidized loans.