Federal Direct Parent PLUS Loan
IMPORTANT: Accepting the Parent PLUS loan amount on CougarNet will NOT disburse funds to the student's account. The parent borrower MUST complete an application at StudentLoans.gov.
Parent PLUS Loans are offered to parents of dependent undergraduate students to help pay for educational expenses not covered by other financial aid. A credit check is performed during the application process and approval of the loan is based on the applicant's creditworthiness. The maximum amount the parent can borrow is the Cost of Attendance minus all other financial aid received. The student’s Cost of Attendance may be found on the student’s award letter on CougarNet. It is important that the parent borrows only what is needed for educational expenses.
How to Apply
To receive a Parent PLUS loan, the student must first complete the FAFSA. The parent must then complete a Parent PLUS application by logging in with their own FSA ID at StudentLoans.gov. If the parent does not have an FSA ID, the parent will be required to create one. Do not use the student’s FSA ID. The parent's credit check is valid for 180 days. Any additional applications during that time will use the same credit information to make a decision on the parent's eligibility. All first-time Parent PLUS Loan borrowers must also complete a Master Promissory Note (MPN) at StudentLoans.gov.
If the parent is seeking a Parent PLUS loan for summer, even if the parent has completed an application for fall/spring, a separate application is required for summer term.
To receive the Parent PLUS loan, the student must be enrolled at least half-time (Credit Hour Requirement for Financial Aid) and maintain Satisfactory Academic Progress.
Can the Parent Still Receive a Direct PLUS Loan if the Parent Has an Adverse Credit History?
If the parent has an adverse credit history, the parent may still receive a Parent PLUS Loan through one of these two options:
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Obtain an endorser: An endorser is someone who is creditworthy and agrees to repay the Parent PLUS Loan if the parent does not make payments. The endorser cannot be the student. The potential endorser must complete an Endorser Addendum at studentloans.gov. For borrowers whose application is approved based on an endorser, a new MPN must be completed with each application.
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Appeal your denied credit decision: A parent may be eligible to receive the Parent PLUS Loan if they are able to provide satisfactory documentation of extenuating circumstances regarding their credit history to the U.S. Department of Education.
All applicants whose Parent PLUS Loans are approved based on these two options must complete PLUS Credit Counseling with each application.
What if My Parent's Appeal Is Denied and My Parent Can’t Find an Endorser?
Students of parents who are not able to obtain a Parent PLUS Loan may be eligible for additional Federal Direct Unsubsidized Loan funds. If, during the application process, the parent is denied a Parent PLUS Loan, the parent may choose not to pursue the loan and the student may be offered additional Unsubsidized Loan funds that can be accepted on CougarNet. If, at any time the parent decides not to pursue the loan, the parent must send the Office of Student Financial Aid an email at [email protected] (using the parent’s email address given on the Parent PLUS Loan application) stating that the parent does not wish to pursue the loan.The student may be offered additional Unsubsidized Loan funds.
Loan Fees
There is a loan origination fee on all Parent PLUS Loans. The fee is a percentage of the loan amount and is deducted from each loan disbursement.
Current Interest Rates
View current Federal Direct Loans interest rates and learn how interest is calculated.
How Will My Parent Receive the Loan?
SIUE will apply Parent PLUS Loan funds to the student’s account to pay for tuition, fees, room and board, and other school charges. Any excess funds will result in a refund that will be disbursed to either the parent borrower or the student based on the choice made during the Parent PLUS application process. All refunds are disbursed by the Office of the Bursar.
When Will Repayment Begin?
Repayment will vary based on the repayment plan chosen at the time of application. Carefully review the repayment options when applying.
