Federal Direct Parent PLUS Loan
Under this federally guaranteed loan program, parents may borrow up to the total amount of education costs less any financial aid.
When should I begin the application process for 2021-2022?
The Federal Direct Plus Loan application for 2021-2022 is now available on the federal loan website. We do not anticipate our office processing applications until mid-June. Please note: In order to allow sufficient time to process the PLUS loan, all requests for the 2021-2022 academic year must be submitted by May 11, 2022.
Parents should wait until their student has a financial aid notification.
- NEW STUDENTS: additional instructions will be sent in May to students who have paid an enrollment deposit.
- Returning student notifications are sent beginning in mid-June.
- Parents of dependent students who submit a Free Application for Federal Student Aid (FAFSA) may qualify for a Federal Direct PLUS loan. The PLUS loan is available without regard to financial need. However, all parent borrowers must pass a basic credit check. The borrower must be the natural parent, adoptive parent or stepparent of the student.
- The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note, if you have not already completed one. If your credit is not approved, you will have the option to (1) not pursue the loan, (2) obtain an endorser, or (3) appeal the credit decision. *Applicants with an adverse credit history who obtain a valid endorser or who successfully document extenuating circumstances will be required to complete PLUS Loan Counseling.
- Parents may borrow up to the full estimated cost of attendance, including tuition, room and board, books, transportation and additional expenses, minus any other financial aid awarded to the student.
- Repayment begins approximately 60 days after the loan is fully disbursed. Parent borrowers are required to make monthly payments and typically have 10 years to repay the loan. There are no prepayment penalties on a PLUS Loan.
The Federal Direct PLUS Loan currently has a 4.228% origination fee that will be deducted from the gross amount of the loan at the time of disbursement. (Due to the government sequester, the origination fee is likely to change for NEW loans with a first disbursement on or after October 1, 2021.)
The interest rate on Federal Direct PLUS loans is fixed at 6.28%.
- Paid in two disbursements: The first at the beginning of the loan period and the second halfway through the loan period. Typically, disbursements occur mid-August and again in mid-January (approximately 10 days before the start of each semester).
- Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. The financial aid office will notify the borrower when the disbursement is received. If there is a credit balance DePauw will issue a refund to the borrower.
- We will assume that you are requesting the loan for the Fall and Spring semesters. If you would like the loan for only one semester, please let us know as soon as possible.