Office of Student Financial Aid

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FALL 2016 - SPRING 2017

William D. Ford Federal Direct Parent PLUS Loan Program for Undergraduate Students

What is a Parent PLUS Loan?

The PLUS loan is a federally funded loan from the U.S. Department of Education for parents/stepparents of dependent undergraduate students. Stepparents are eligible as long as their information is included on the Free Application for Federal Student Aid (FAFSA). Parents borrow the loan from the federal government not a bank, savings and loan or credit union.

What will my interest rate and origination fee be?

Repayment is a fixed interest rate of 7.00% on all PLUS Loans disbursed on or after July 1, 2017. Interest accrues on the unpaid balance of the loan from the date of disbursement by the school until the entire principal balance is paid in full. Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan). Currently, a 4.276% origination fee is deducted upfront of each disbursement.

How much money am I eligible to borrow?

Unlike other types of financial aid, the Parent PLUS Loan is not need based. The maximum eligibility amount is determined by the Student's Cost of Attendance minus any financial aid that the student has been awarded and accepted. The Parent PLUS loan can replace all or a portion of the expected resources. If the student will not be receiving financial aid of any kind, the parent can borrow the full cost of attendance. Parents do not have to apply for the entire amount. Parent should calculate the amount they need. Please refer to the students Award Offer on the SF State Gateway for the amount of Parent PLUS Loan that you are eligible to borrow.

Am I required to take a Parent PLUS Loan upon application?

No. Approval of a Parent PLUS loan application does not commit you to accepting the loan. If approved, you must contact the Office of Student Financial Aid to cancel or reduce the requested loan amount.

How will I receive my Parent PLUS Loan funds?

The Parent PLUS Loan is disbursed to the Parent. If the loan is a full year loan, the loan will be disbursed half in the Fall and the other half in the Spring semester. If the loan is for one-semester, the loan will be disbursed in one disbursement.

When will I have to begin repaying the Parent PLUS Loan?

Repayment and interest will apply to funds after the loan has been disbursed. The first payment of interest and principal are due within 60 days after the loan is fully disbursed. The parent may request an in-school deferment. If, after obtaining a Parent PLUS loan, the student for whom the parent borrowed drops to less than half time or withdraws during the period for which the loan was intended, the entire amount is immediately due.

What happens if my Parents PLUS application is denied?

Option 1

Appeal the decision by calling Direct Loan Servicing Center at 1 (800) 557-7394
(Borrower (parent) whose Direct Plus Loan credit checks are denied and then approved through a credit appeal must also complete a PLUS loan counseling. This step must be completed by the borrower (parent) and not the endorser.

Option 2

Secure an endorser. If you have decided to pursue an endorser (co-signer) , the endorser will complete the "Endorse Direct PLUS Loan" section at

(Borrower (parent) who secures an endorser for their Parent PLUS loan must also complete a PLUS loan counseling. This step must be completed by the borrower (parent) and not the endorser.


  • Khushboo Shah if you pursue this option. Failure to contact our office will result in this loan not being processed.

Option 3

Undecided - No action will be taken by the school.

Option 4

Not Pursue a PLUS Loan at this time and request additional student loan. If the parent is denied and does not get an endorser the student has an opportunity to request more student loan. The student can request additional loan by completing the Additional Unsubsidized Loans Request Form and submitting the form to our office.

  • Freshmen and Sophomore class level maximum increase: $4000 for the academic year
  • Junior and Senior class level maximum increase: $5000 for the academic year

Steps in Applying for a Parent PLUS Loan

Step 1 -

  • Go to and log in with the borrower (parent) FSA User ID & Password
  • After logging in successfully click on "Apply for a Plus Loan" from the center of the page
  • Under the type of Direct Plus Loan Request select "Complete PLUS Request for Parents"

For the Award Year select 2016- 2017 and for Award Period Range
select - "August 2016 - May 2017" and complete the entire application.

After submitting the application successfully the credit results are displayed immediately on the next screen, if the credit is approved this indicates parent are eligible to borrow the parent plus loan.

Step 2 -

After the credit check is approved, the borrower parent must also complete an online electronic Master Promissory Note at
(This step is required for first time Parent PLUS Loan borrowers)

* Note - After you have completed all the steps successfully please allow up to 3 weeks for processing and Parent PLUS loan checklist items to be updated from your to-do-list.

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