What Is the Federal Direct Parent PLUS Loan?
The Federal Direct Parent PLUS Loan allows parents to help cover their student’s educational expenses. These loans are available to parents with acceptable credit histories who wish to borrow on behalf of their dependent undergraduate student, as determined by the Free Application for Federal Student Aid (FAFSA).
Eligibility and FAFSA Requirement
Although the Parent PLUS Loan is not based on financial need and is available to parents of all eligible dependent undergraduate students, the student must still complete the FAFSA to qualify. The Parent PLUS Loan is borrowed solely in the parent’s name and cannot be transferred to the student at any time.
Interest Rates and Borrowing Considerations
Parent PLUS Loans carry a higher interest rate than Federal Direct Loans. For this reason, students are encouraged to fully utilize their Federal Direct Loan eligibility before a parent applies for a PLUS Loan. A credit check is required; however, the credit standards are generally less stringent than those for private or alternative student loans.
Credit Check, Endorsers, and Appeals
If a parent does not meet the initial credit requirements, they may still qualify for a Parent PLUS Loan by obtaining an endorser or through the credit appeal process.
PLUS Loan Counseling Requirement
If your Parent PLUS Loan includes an endorser or you have been approved through the credit appeal process, you are required to complete PLUS Loan Counseling on the Federal Student Aid website. The U.S. Department of Education will notify you when this requirement applies.
Once assigned, the counseling will appear as a To-Do item in your MyUBalt portal and must be completed before your endorsed or appeal-approved PLUS Loan can be disbursed. More information about PLUS Loan Counseling requirements is available on the Federal Student Aid website.
Additional Resources
Additional information about Federal Direct Loans—including interest rates, fees, consolidation options, deferment, and loan calculators—is available on the Federal Student Aid website.
Caps on Parent PLUS Loan Borrowing
Under the One Big Beautiful Bill Act, new limits apply to Parent PLUS Loan borrowing:
Important Disclaimer:
The information provided here reflects our current understanding of the law and is not official guidance. It should not be considered definitive. For official rules and regulations, please refer to federal government sources, including studentaid.gov.
You may borrow up to the full cost of your student’s education, minus other financial aid your student receives, such as Federal Direct Loans, scholarships, grants, and tuition remission.
If your student receives additional aid or if the cost of attendance changes (for example, due to a residency status update), your Parent PLUS Loan eligibility may be adjusted accordingly.
To be eligible for a Federal Direct Parent PLUS Loan, both the parent and the student must meet the following requirements:
Parent Requirements
Student Requirements
The Parent PLUS Loan application is available online through the Federal Student Aid website. The parent borrower must sign in using their own Social Security number and FSA ID.
After signing in:
To ensure your application is processed correctly, be sure to include the following information:
*If you select a full academic year loan period, the loan will be disbursed in two equal payments—one in the fall and one in the spring. For example, a $10,000 Parent PLUS Loan will disburse $5,000 in September and $5,000 in February, minus the origination fee.
Credit approval for a Federal Direct Parent PLUS Loan is based on federally mandated criteria—not your credit score. To qualify, your credit report must not show any of the following:
Recent changes to federal law provide a specific extenuating circumstance for certain Parent PLUS Loan applicants who might otherwise be considered to have an adverse credit history. You may still qualify if you:
Credit Approval
Credit approval for a Parent PLUS Loan is valid for three months. Your credit is reviewed each time you apply for a new loan unless you have received
a credit decision within the past three months.
If you believe your credit report may include one or more items that do not meet the credit requirements, you may want to review your credit report in advance. In some cases, issues can be resolved—for example:
Bringing a delinquent account to less than 90 days past due by making a payment
Working with a lender or collection agency to resolve an account and obtain a “settled in full” status
Once an issue is resolved, it is no longer considered in the credit evaluation and may result in credit approval.
What if my Parent PLUS Loan is credit denied?
If your Parent PLUS Loan application is denied due to credit, you still have options. During the Direct Loan online application process, you will receive information about:
Obtaining an endorser, or
Appealing the credit decision
You may also contact Applicant Services for PLUS Loan borrowers at 1-800-557-7394 for assistance.
UBalt is notified of a credit denial within 3 to 5 days. At that time, the student may be offered additional Unsubsidized Direct Loan eligibility, which can be accepted through the MyUBalt student portal.
What happens if my endorser or credit appeal is approved?
Once Direct Lending notifies UBalt of an approved endorser or credit appeal, the Parent PLUS Loan will be added to the student’s account and displayed in the MyUBalt student portal.
If the student has already accepted the additional Unsubsidized Direct Loan offered after the credit denial, that loan will be canceled and replaced with the approved Parent PLUS Loan.
Parents with an endorsed or appeal-approved Parent PLUS Loan are required to complete PLUS Loan Counseling on the Federal Student Aid website. The U.S. Department of Education will notify you when this requirement applies. The counseling will appear as a To-Do item in your MyUBalt portal and must be completed before the loan can be disbursed.
Additional information about PLUS Loan Counseling requirements is available on the Federal Student Aid website.
Parent PLUS Loans are the financial responsibility of the parent, not the student. Parents are responsible for repaying the loan, including any accrued interest.
Parents may contact the Direct Loan Servicing Center at 1-800-848-0979 to request a deferment of payments based on the student’s enrollment status.
For more information about repayment options, visit the Direct Loan Program FAQs page.