ACADEMIC OFFICES
550 West Van Buren Street
Chicago, IL 60607
MAIN CAMPUS
Indianapolis
Tel: 877-320-5430
FINANCIAL AID OFFICE
1515 West Cypress Creek Road
Fort Lauderdale, FL 33309
Tel: 866-522-7747 (Toll Free)
PARENT PLUS LOANS—FREQUENTLY ASKED QUESTIONS (FAQS)
FOR STUDENTS AND PARENTS
PARENT PLUS FAQ REV 03/2020
1. What are Parent PLUS Loans?
Parent PLUS Loans are unsubsidized federal loans that parents of dependent undergraduate students can use to help pay for
educational expenses not covered by other nancial aid.
2. What are benets of a Parent PLUS Loan?
Some of the benets of a Parent PLUS Loan include:
• Fixed interest rate
• Can borrow amounts up to cost of attendance minus any other nancial aid received
• Flexible repayment options
3. What are the eligibility requirements for a Parent PLUS Loan?
• Parents and students must be U.S. citizens or eligible noncitizens and must not be in default on any federal loan or owe an
overpayment on a federal grant.
• Parent must be the student’s biological or adoptive parent or the student’s stepparent if the biological or adoptive parent
has remarried at the time of the application.
• Neither parent nor endorser can have an adverse credit history.
• Student must be under age 24, unmarried, and have no legal dependents at the time of submitting the FAFSA
(exceptions apply).
• Student must be enrolled at least half time.
• Parents and students must meet the general eligibility requirements (studentaid.ed.gov/sa/eligibility) for federal student aid.
4. What if my parent gets denied for the Parent PLUS Loans?
If a parent gets denied for the Parent PLUS Loan, the student will be eligible to receive additional unsubsidized loan funds
for the current academic year. Credit denials are valid for an entire academic year. A parent may re-apply for a subsequent
academic year and if approved, the student will be eligible for a Parent PLUS Loan and not additional unsubsidized loans in
the subsequent academic year.
5. How much can my parent borrow in Parent PLUS Loans?
A parent can borrow up to the student’s cost of attendance (https://studentaid.ed.gov/sa/fafsa/next-steps/how-
calculated#what-does-cost-of-attendance-mean), minus any other nancial assistance received.
6. What is the interest rate for a Parent PLUS Loan?
Loans disbursed between July 1, 2014, and June 30, 2015, have a xed interest rate of 7.21%. Loans disbursed between July 1,
2015, and June 30, 2016, will have a xed interest rate of 6.84%.
7. Are there any additional fees associated with the Parent PLUS Loan?
Yes, there is a 4.292% loan origination fee on all Parent PLUS Loans rst disbursed on or after Oct. 1, 2014. The fee will be
proportionately deducted from each loan disbursement. For loans with a rst disbursement date of Oct. 1, 2015, and after, the
loan fee will decrease to 4.272%.
8. Which of my parents should apply for the Parent PLUS Loan?
The parent whose information is listed on the FAFSA will be the one who will apply for the Parent PLUS Loan.
9. How does my parent apply for a Parent PLUS Loan?
After the dependent student has completed the FAFSA, the parent can apply for a Parent PLUS Loan online at
https://studentloans.gov under the section “Complete PLUS Request Process.” The parent will need to reapply for the
Parent PLUS Loan each new academic year.
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