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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 2020-2021?

The Federal Direct Plus Loan application for 2020-2021 is now available on the federal loan website. We do not anticipate our office processing applications until mid-June.

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.
  • 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.

Loan Fees

The Federal Direct PLUS Loan currently has a 4.236% 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 subject to change for NEW loans with a first disbursement on or after October 1, 2020.)



The interest rate on Federal Direct PLUS loans is fixed at 5.30%.

Loan Disbursement

  • 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.