Parent Federal PLUS Loans

About the Loan
Interest Rate and Fees
Loan Amount
Application for Loans
Offer of Loans
Disbursement of Loans
Maintenance of Loans
Repayment of Loans

About the Loan

Federal PLUS loans are for parents of dependent undergraduate students. Borrowers can use PLUS loans to help meet the cost of attendance or cover a student's expected family contribution (the amount of money the government expects the parents and student to provide each year for the student's education).

Interest Rate and Fees

  • The interest rate is fixed at 7.9%.
  • The U.S. Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each disbursement of your loan.
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New Changes

Any loan that disburses after March 1, 2013 will have higher fees.

  • Subsidized and unsubsidized loan interest rates will increase by .05% (The old fee was 1% and is now 1.05%)
  • PLUS loan interest rates will increase by .20% (The old fee was 4% and is now 4.20%)

Because of the higher fees, disbursement amounts will be less.

  • Example: A subsidized or unsubsidized loan fee for $5,500.00 will increase from $55.00 to $57.75. The disbursed amount will be $5,442.25.
  • Example: A PLUS loan fee for $10,000.00 will increase from $400.00 to $420.00. The disbursed amount will be $9,580.00.

Loan Amount

With a PLUS loan, you can borrow up to the cost of attendance minus any other financial aid awarded.

Application for Loans

This loan is designed for parents of the student. Parent of the student is classified as the mother/step-mother, or father/step-father. Any other family members may not apply for this type of loan to assist with tuition and fees.

Parent of student must apply at studentloans.gov.

Eligibility Requirements

  • Must be a U. S. citizen or eligible non-citizen.
  • Not in default on a federal student loan.
  • Not owing a refund on a federal education grant.
  • Must have an adverse credit history.
  • Son or Daughter must be enrolled in at least 6 semester hours.
  • Complete master promissory note at https://studentloans.gov.

Offer of Loans

All students planning to receive a Parent PLUS direct loan must be enrolled half-time. Parent will need to complete a Master Promissory Note at www.studentloans.gov.  To complete these requirements, parents will need a Department of Education PIN (the same PIN used for the FAFSA) to e-sign their electronic MPN. They will also need their social security number, date of birth, driver’s license number and two personal references (full name, address, and telephone numbers) to complete their MPN. The University of Houston will electronically verify with the Department of Education that these steps have been completed before funds are released.   

Disbursement of Loans

Disbursement dates will begin after January 14, 2013. Once the parent has completed their MPN, the student may check back with our office regarding disbursement after January 14.

Once the loan has been disbursed, the funds will be applied to the students account to cover charges. If a credit balance is created, funds will be refunded to the student's Higher One account preference.

Maintenance of Loans

In order to maintain eligibility, students must be enrolled at least half-time at the time of disbursement and meet all Satisfactory Academic Progress requirements.

Loan Repayment

Parent borrowers:

  • Repayment begins 60 days after the loan fully disburses.
  • A deferment can be requested, which will delay repayment until 6 months after the student completes their program of study or drops below half-time enrollment. To apply for a deferment, the parent must contact the Direct Loan Servicing at 1-800-848-0979.
  • Borrower will have up to 10 years to repay the loan.
  • There is no grace period. Interest begins to accumulate immediately after disbursement.

Please review the William D. Ford Direct Loan Program for additional information on Repayment Plans.