Federal Direct Parent PLUS Loans

Student and parent PLUS loans for the 24/25 academic year are now open and available to be accepted.

Federal Direct Parent PLUS Loans

Parents of dependent undergraduate students may borrow a Federal Direct PLUS Loan to help their student pay for college.

Frequently Asked Questions

What is a Direct Parent PLUS Loan?

The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

Am I eligible for a Direct Parent PLUS Loan?

In general, to receive a Direct Parent PLUS Loan, you must:

• be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school;
• not have an adverse credit history; and
• meet the general eligibility requirements for federal student aid, your child must also meet these requirements.

What if I am denied the Direct Parent PLUS loan due to adverse credit history?

The U.S. Department of Education (ED) will notify you if you are denied the Federal Direct Parent PLUS Loan. The school will provide the loan reference/ ID number for a denied loan through an email to the Student’s Arizona email account.

• If you are denied the Federal Direct Parent PLUS Loan, there are three options available.
• OSFA will not continue to process the loan until you communicate via email as to which of the three options you prefer.
• Please note that once one of the options is selected, our office will process your aid based on that selection. You must notify our office via email to authorize a change in your original selection, as we will not take action based solely on new information received from ED or over the phone.

The three options available, when a Federal Direct Parent PLUS Loan is denied for adverse credit, are listed below:

1. Appeal the adverse credit decision with the Direct Loan Applicant Service Center at 1.800.557.7394.

2. Obtain a credit-worthy endorser Be aware that if your loan request is denied, it will most likely continue to be denied in the future. You should be prepared to secure an endorser who can also assist you in future years. The steps the endorser must complete are listed below:

• Obtain a Federal FSA ID.
• Sign in with the FSA ID at https://studentloans.gov.
• Use the Loan Reference Number (same as the loan identification number, also called an "Endorser Code" or "Award Identification Number") that OSFA will provide to you via email.

The endorsement is only valid for one loan. You must complete a new Federal Direct Parent PLUS Loan Master Promissory Note and endorsement each time you request a Federal Direct Parent PLUS loan.

3. Your student may request an additional Federal Direct Unsubsidized Loan. If this option is selected, the Direct Parent PLUS Loan will be canceled and an additional Federal Direct Unsubsidized Loan will be offered to your student. The amount of the loans vary depending on the student's grade level in school:

• Freshmen and Sophomores - up to $4,000 for the academic year
• Juniors and Seniors - up to $5,000 for the academic year