Federal Direct PLUS Loan

Parents who are citizens or permanent residents of the United States may borrow up to the total cost of education, less any financial aid, through the PLUS program. Many parents find this a useful way to finance some or all college expenses. Parents do not need to qualify for need-based financial aid to participate in this program but the student is required to have a FAFSA on file. When determining loan amounts, keep in mind that a fee of 4.228% will be proportionately deducted by the government from each loan disbursement. If a PLUS Loan is denied, the student may request additional Direct Unsubsidized Loan funds by filling out this form.

Borrowing Limits

College costs minus all other financial aid.

Interest Rate

For 2024-25, the interest rate for Direct PLUS Loan is 9.08% fixed.

How to Apply for a Direct PLUS Loan

A FAFSA must be completed.

First-Time Borrowers

  • On or after May 1, parent borrowers can access the Federal Student Aid website to submit a Direct PLUS Loan Application for Parents.
  • Upon approval of their initial application, parent borrowers must complete the Direct PLUS Loan
    Master Promissory Note (MPN).

Renewal Borrowers

  • On or after May 1, parent borrowers can access the Federal Student Aid website to submit a Direct PLUS Loan Application for Parents.

Disbursement

Loan proceeds are sent directly to Lafayette and applied to the student’s account in two disbursements, one each semester. If a credit balance results directly from the application of the Plus loan to the student’s account, the excess will be refunded to the parent borrower within two weeks of the disbursement.

Repayment

Repayment begins after the loan is fully disbursed or may be deferred while the student is still attending school.

Direct any loan-related questions to financialaid@lafayette.edu or (610) 330-5055.