Federal Direct PLUS (Parent) Loan

A Student Sitting at Fountain

Parents may begin to submit 2015-16, PLUS loan application on June 1. NOTE: student must be awarded financial aid before application can be processed.

Deadline to submit application:

  • December 1, for one-term enrollment (fall only)
  • Dates differ for the 2014-15 & 2015-16 academic year:
    • May 1, for 2014-15 academic year loans (fall 2014-spring 2015), or one-term enrollment (spring only)
    • April 29, for 2015-16 academic year loans (fall 2015-spring 2016), or one-term enrollment (spring 2016)

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 when a PLUS (Parent) loan application is received. If the loan is denied due to adverse credit, you will have the opportunity to contact the Direct Loan Servicing Center to pursue a Co-signer or Endorser for the loan.

If you decline the option to pursue an endorser:

Your student may have additional Unsubsidized Stafford loan offered to them. The student's eligibility is limited by grade level: $4,000 max for freshman/sophomore; $5,000 max for junior/senior.

If you choose to pursue a Co-signer or Endorser, you must:

  1. Notify the Financial Aid and Scholarship Office of your intent to pursue an endorser.
  2. View your student's MySJSU for updates to the "Offer/Accept" status on the Direct Loan PLUS.
  3. Once the Direct Loan PLUS is in "Offer/Accept" status, contact the Financial Aid and Scholarship Office for a Loan ID #.
  4. Once you have a loan ID#, the endorser logs into www.studentloans.gov with their PIN# and SSN. The endorser will fill out an Endorser Addendum.
  5. At this point, you must inform the Financial Aid and Scholarship Office that the endorser was approved for the loan.
  6. The borrower (Parent), may then log into www.studentloans.gov to sign the Master Promissory Note.

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

The origination fee for the Parent PLUS loan is 4.292% of the amount borrowed. For example, a loan for $10,000 will have an origination fee of $429. The origination fee is subtracted from the amount that will be disbursed.

Disbursement of Funds

Disbursement of funds begins the first week of the semester and continues on a weekly basis. Academic year PLUS loans are disbursed to student's account in two equal installments usually at the beginning of each semester. 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

You will be contacted by your loan servicer. Your loan servicer will provide 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 60 days after the second disbursement.

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

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 Direct PLUS (Parent) loan application to the Financial Aid and Scholarship Office (FASO). The application can be downloaded here: 2014-15 Parent PLUS loan application.

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

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.